Posted on Jul 22, 2021
Here’s how you can remove contingencies to make a better home offer.
Things are tricky for buyers in today’s market. It’s an incredibly competitive environment, so to get an offer accepted, a buyer needs to pull out all the stops. One of the best ways to do this is to remove contingencies.
Every offer we write has certain contingencies involving appraisals, inspections, and loans. The most crucial one is the inspection contingency, but if the listing agent provides us with an inspection, we won’t need to include this contingency. If they don’t provide one, we’ll need to get one to ensure there aren’t detrimental but unseen issues with the property. However, we’ll want to keep the inspection period as short as possible. Having no inspection contingency is best, but it’s risky to do.
Another important contingency regards the appraisal. You don’t need an appraisal if you pay cash, but most people use financing. However, we can remove the appraisal contingency if we have a very good idea of the home’s value. I’m very good with numbers, so I can help you determine a home’s worth and what the appraised value is likely to be.
“Removing contingencies can make your offer stronger and help you win as a buyer.”
Next is the loan contingency. To successfully remove this, your lender will need to do more than pre-qualify or pre-approve you for a loan—you’ll need to be fully underwritten. When you provide all your different documents and allow your lender to underwrite you, you know you’re guaranteed the loan and can thus remove the contingency. However, the lender would have to be comfortable with doing this process.
Removing contingencies can make your offer stronger and help you win as a buyer. However, there can be many risks involved when doing so, which is why it’s important to speak with an expert real estate agent.
I’d be happy to help you determine whether removing contingencies is a good idea in your situation, and I’m always available to answer any questions you may have about the market. Feel free to reach out to me if you’d like more information or are ready to buy a home. I look forward to hearing from you soon.