What are Contingencies on a Contract?

What are Contingencies on a Contract?

Contingencies are commonplace in contracts of all kinds. A contingency allows for one party or another to legally back out of a contract in the event of some specific condition occurring. They are protection against the unknown. 

 In real estate, there can be contingencies inserted for either buyer or seller or both. These take many different forms and until removed in writing, either party may change their minds based on the result of the contingent event or issue.

  Some examples of home buyer contingencies: 

• Home inspections – condition of the home

 • Specialty inspections – mold, geological, roof inspections

 • Code Violations – an investigation into improvements made without permits

 • Lender appraisal – ensures the offered price is not too high 

• Sale of current home – allows the buyer to back out if they cannot sell their current home in specific time frame

 • Final loan approval – loan is ready for signature and close

 • HOA CC&Rs – review of documents to ensure rules and regulations do not infringe on enjoyment of property 

• Insurability – home owner’s insurance available at a reasonable rate 

Home sellers can also have contingencies included as well, such as one which states the sale is contingent on finding a replacement home. Contingencies are a fact of contract law. In real estate, they ensure that the offer is concluded as expected.

Home Buying doesn't have to be complicated or stressful. You can trust that I can advise you every step of the way. Contact me at Davis and Associates to help you answer all your Real Estate Questions. 

The Internet Can't Replace Your Agent

The Internet Can’t Replace Your Agent

 We live in the information age; the Internet offers advice on every topic and real estate is no exception. With more and more home buyers starting their home search online, they are bombarded with advice and information – it can be easy to think that you can learn everything you need to know just by reading articles online. 

The truth is your real estate agent does much more than answer your questions and open doors with a special key. A professional real estate agent will be there every step of the way. They have the experience necessary to navigate the complicated home buying process and solve common hiccups that present themselves in every real estate transactions,

 Your real estate agent is a local professional. They will start by presenting themselves to the buyer’s agent as someone who will work with them to see the transaction through to a successful conclusion. They have a network of professionals who will work as a team to help you through the process. These include such professionals as: lenders, title reps, escrow officers, transaction coordinators, home inspectors, contractors and handymen, among others.

 Most importantly, your agent is your ally in the home buying process. They negotiate on your behalf – armed with experience and understanding of customary charges, costs and terms. They will ensure that the price you pay for the home is fair for the condition and neighborhood. They will negotiate repairs, if needed and make sure you are protected with the proper contingencies. 

The Internet offers lots of great information, but the most important step you can take when buying a new home, is hiring a local professional real estate agent. Their knowledge and expertise can’t be found by reading an article or two online. 

Tips For Buying A House In The Fall

Tips for Buying a House in the Fall 

Surprisingly, fall is a great time to buy a home. There are still homes on the market which did not sell during the summer months, some at deep discounts. There are also homes newly listed by sellers trying to beat the slower winter months. At the same time, there are fewer buyers out searching, which makes it the perfect time to buy a home. 

 • Fall home buyers should be ready to move when they find the right home and at the right price. Get pre-qualified so that you can jump at the right opportunity. You don't want to lose the home you just fell in love with to another buyer who was pre-qualified first.

 • Notice the imperfections. With windy or rainy weather, homes can show their scars. Look for evidence of water intrusion and evaluate the yard debris with the falling leaves. Look at gutters and ceilings for both. 

 • Visit the local school. With school in session, this is a good time to visit and ask questions from teachers and administrators. 

 • Wait for winter if necessary. Buyers all but evaporate in the winter months, so while the competition seems low in the fall, wait for the right home to come along, even if it’s in January.  Buying a home this fall is exciting. By using the season to its advantage, home buyers can get a great deal.