Buying a Home? Make Sure Not to Waive These Contingencies
Thanks to low inventory and high demand, competition for property has never been more fierce. And in response to the ultra-competitive market, some buyers are waiving their contingencies to make their offers more attractive to sellers.
But no matter how hot the market is, there are certain contingencies you should never waive. A recent article from realtor.com outlined the contingencies buyers should never waive during the home buying process (even in a seller’s market!), including:
Home inspection. The home inspection gives you key insights into the condition of the home and any necessary repairs or improvements that need to be made. The home inspection will also alert you to any red flags that the house isn’t what it appears (for example, issues with the foundation)—which is why you should never waive it.
Mold remediation. Mold can cause a host of health issues—and if your home inspection reveals that there’s a mold problem, you may want to ask the sellers to take care of it before you move in. Otherwise, you could find yourself dealing with the stress and expense of getting mold removed down the line—or, even worse, managing adverse health effects as a result of the mold issue.
Appraisal. If you have a mortgage, you should never waive the appraisal. Otherwise, if the home appraises for less than the purchase price you agreed to, your bank may only cover the amount the home is appraised at—and you could find yourself on the hook for the difference.
The Takeaway:
Bottom line? Waiving contingencies might make your offer more attractive to buyers, but it could translate to a disastrous home purchase—so make sure to keep your key contingencies in place.
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