At least not in this market, and that's my suggestion when I'm representing the buyer. The listing agent and the seller, on the other hand, seek just the opposite.
In this market it just doesn't make sense. Even in a seller's market if the financing date and the closing date are close, like 7 - 10 days, it still may not make sense to waive your contingency. I usually try to write contracts with such a timeline.
Why do I say this?
Even when your lender issues a commitment letter, it's still subject to a list of items. Most of these items are in the control of the buyer and it's up to the buyer to manage like not running out and signing a lease or loan to for a new car prior to closing. However, there are some items that may not be in the buyers control - e.g. loss of employment, a clerical error generating a new negative credit report...etc.
The bottom line is, until the lender sends the money to the closing agent and funds the purchase, they can always change their mind. I've seen it happen on the day of closing when the underwriter scrutinized a condo association's financial records again and decided the reserves were insufficient in his estimation. What can you do? Not much.
The seller wants to keep your deposit money if you fail to close and if you waive the financing contingency you will be in a pickle. I should point out that in Florida, the contracts that we use requires the buyer to explicitly remove the financing contingency in writing or deliver in writing notice of receipt of loan commitment.
So, let's get back to the practical matter. Without a waiver, after the financing date the seller can terminate the contract and return the buyers funds. But, closing is only 7 - 10 days away. Why would the seller not wait it out? The only reason I can presume is a cash buyer on hand at the same or higher price. But, there is then the risk of more inspections and delays. Certainly a choice the seller can make.
To waive or not to waive, a decision that the buyer must make after weighing the risks.
Please visit Naples Fl Luxury Real Estate
Comments(2)