Once you make an offer and it is mutually agreed upon, there are contingencies in place to protect the buyer and the seller. Here’s a short list of some common contingencies:
- HOA rules and regulations
Buyers are protected with a financing contingency that states they are not liable to owe the seller anything if their financing falls through. There are dates written in the contract that must be met by your loan officer to let the seller know when final approval is scheduled.
The bank loaning the money is protected by an appraisal, which must meet the sales price offered in order to get financing. If the appraisal comes in lower than the amount offered, the buyer would otherwise be liable to make up the difference without an appraisal contingency.
If the home is a Townhome or a Condominium, there will be rules and regulations set by an association. There is a contingency that once these rules are received by the buyer, there is a ten day period in Minnesota where the buyer can walk away if the rules do not meet his/her needs.
Buyers purchasing a home they plan on living in should always have an inspection performed. Your Realtor® will have a list of inspectors he/she recommends. Not having an inspection will put the buyer at risk, so I highly recommend having one.
Watch the above video for even more valuable tips. Really, I watched it, myself, and there’s good stuff in there! It’s only a few minutes long, and well worth your time.
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