Now that you’ve been to a few open houses and discovered a few properties that you like, and you’re ready to make an offer.
Negotiating and getting an offer approved may take some time.
Your broker will draft a purchase contract with the terms of the offer once you’ve negotiated a price for a house and the seller approves it.
If the sellers accept your offer, they will forward this to them to sign.
If the seller agrees to include any fixtures or appliances with the sale of the home, mention them in the purchase contract.
Don’t take their word for it, and don’t assume anything will be left behind if it isn’t specified in the contract.
AppraisalContingency
Your lender will arrange an appraisal from a third-party appraisal business when your offer is approved, and you must pay the appraisal price up in advance. The assessment will verify that you are paying a fair price for the home to all parties involved in the transaction.
The contract includes an appraisal contingency to safeguard you if the home’s appraised worth is less than the agreed-upon purchase price. In this instance, you have a certain number of days to cancel the contract, complete the purchase, or bargain with the seller to bring the price down to the appraised value.
Financing Contingency
This allows you to apply for and secure mortgage finance to purchase a property. This is significant because it safeguards you if you are unable to secure financing and allows you to cancel the contract and receive your earnest money back.
You’ll have until a certain deadline to get mortgage funding for your house purchase. You will also have until this date to terminate or request an extension of the contract.
House Sale Contingency
This will not apply to you if you are purchasing your first house.
If you’re selling your current house and buying a new one, this is significant since it gives you a defined length of time to sell and pay off your old mortgage before you can get a new one.
This can be aggravating for sellers since they are obliged to reject other offers while waiting for the contingency to be resolved. You are covered by this contingency if you are unable to sell your house for at least the asking price, and you have until a specific deadline to pull out of the contract without legal penalties.
Inspection Contingency
Your agent will assist you in scheduling a home inspection within a few days of your offer being approved.
The home inspection contingency protects you by providing you a certain length of time following the inspection to renegotiate or withdraw your offer without incurring legal penalties if there are major damages to the house.
Before you close, there will be a final walk-through when you can check that the seller repaired any defects discovered during the inspection if they agreed to do so.
It’s time to acquire your financing when the seller accepts your offer.