In today's Real Estate Market, with homes selling quickly, buyers asking for contingencies may not win the bid. In any event, what is a contingency?
The 3 most important contingencies for a buyer in a home purchase on Long Island are the home inspection, financing, and the appraisal.
- The Home Inspection: If there are issues with a home after the home inspection, a buyer can withdraw the offer, or have the seller set aside funds to have these issues corrected, or have them repaired before closing.
- Financing: (Mortgage Contingency): This gives the buyer time to obtain financing for the purchase of the property. If they are unable to acquire the funds needed, they will be able to receive a full refund of their deposit. So, if the buyer’s lender denies the loan, the buyer is not obligated to purchase the property.
- Appraisal: This ensures the bank or mortgage company that the property they are giving a loan on is valued at least the amount of the accepted offer. If it does not appraise, the buyer can put down a larger down-payment, the seller can reduce the price, or the buyer can get out of the contract.
If the seller accepts these conditions, both the buyer and seller will sign the contract. Once that contract is signed, first by the buyer and then the seller, both sides are bound by the agreements they made. These would be the terms of the contract.
Do you have questions about buying or selling a Long Island Home or Condo?
Call Lawrence "Larry" and Sheila Agranoff to help you with your Long Island Real Estate goals.
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Lawrence & Sheila Agranoff
Cell: 631-805-4400
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