What are the Most Common Contingencies when Buying a Wellington Home?

By
Real Estate Agent with Hansen Real Estate Group Inc.

Wellington Florida Real Estate Q&A

What are the Most Common Contingencies when Buying a Wellington Home?Question:
What are the Most Common Types of Contingencies when Buying a Wellington Home?

Answer: When buying a home in Wellington Florida it is not uncommon for home buyers to include a contingency or contingencies in their offer, but before we discuss the most common types of contingencies let's define what a contingency is.

So what exactly is a contingency?

A contingency is a type of clause added to a real estate contract that protects the buyer. It allows them a certain amount of time to "clear" their contingencies and if they are unable to do so within the given period of time they can usually cancel the contract without penalty,
but it will ultimately depend on how the contract was written.

So what are the most common types of contingencies when buying a home in Wellington? Below I've listed the most common types of contingencies I've come across working with buyers and sellers.

#4 Sale of Existing Home:
Sale of existing home contingency means the buyer must sell their current home before they can purchase a new home and if they are unable to do so within the contingency period they can cancel the contract. While this type of contingency use to be very common I personally haven't had a seller accept this type of contingency in over a decade.

#3 Appraisal:
An appraisal contingency means the home must appraise for the contracted purchase price and if it doesn't appraise within the contingency period the buyer can cancel the contract. However in some cases a home buyer may not need to add an appraisal contingency if they already have a mortgage contingency. Also, just because a home doesn't appraise it doesn't necessarily mean the contract needs to be canceled and buyers can find out what some of the other options are @  "What Happens if the Home I'm Purchasing Doesn't Appraise?" 

#2 Financing:

A financing contingency means the buyer must be able to obtain a mortgage within the contingency period, which is usually 30 days and if they are unable to do so can cancel the contract. While nearly 50% of Wellington home buyers need to obtain a mortgage in order to purchase a home not all of them will include this type of contingency. This is not something I recommend, but I have had several home buyers remove their finance contingency in order to compete with cash buyers and/or have their offer accepted.

#1 Home Inspection:
A home inspection contingency allows the buyer to perform an inspection within the contingency period, which is usually within 5-10 days of the effective date. However unlike a lot of other contingencies a home inspection contingency doesn't necessarily mean the buyer can cancel the contract, it will depend on the contract and addendums used.
A home inspection is something I always recommend regardless if the home is brand new or looks well maintained.

So how many contingencies do most Wellington home buyers include in their offer?

This answer varies, sometimes zero and sometimes 3-4, it all depends on the home buyer along with the current market conditions. In my experience a majority of cash buyers will only have one contingency, the inspection while most financed buyers will have at least two, but once again they may choose to remove or add additional contingencies. My best advice for home buyers is to work with an experienced Realtor who understands the market conditions and how to write a winning offer.

For more real estate questions and answers visit Wellington Florida Real Estate Q&A

If you are looking to buy or sell your Wellington home contact us today! You can reach us 7 days a week by calling 561-333-0446 or via e-mail @ Contact@WellingtonHomeTeam.com


Originally posted at http://wellingtonhometeam.com/what-are-the-most-common-types-of-contingencies-when-buying-a-wellington-home/
 

Posted by
About the Author:
Michelle Gibson is a full-time Realtor with the Hansen Real Estate Group Inc. She has been specializing in residential real estate throughout Palm Beach County Florida since 2001. Specific areas of expertise include; Wellington, Lake Worth, Royal Palm Beach, West Palm Beach, Boynton Beach, Loxahatchee, Greenacres, Lake Clarke Shores, Palm Beach Gardens, Jupiter, Delray Beach and Jupiter.
 
Whether you're looking to buy, sell or rent Michelle will be able to walk you through your entire real estate transaction from start to finish.
 
Connect with Michelle:

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Florida Palm Beach County Wellington Village Of Wellington
Groups:
Palm Beach County Homes for sale- South Florida Real Estate for Sale
Wellington Homes for sale- South Florida Real Estate for Sale
Almost Anything Goes
Palm Beach County Pros
Palm Beach Florida
Tags:
real estate qa
wellington home buyer
wellington florida home buyer
buying in wellington florida

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
4,798,519
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Excellent information, Michelle, for those unfamiliar with contingencies in real estate contracts.

Nov 14, 2014 08:44 PM #1
Rainmaker
4,318,845
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Michelle, this is a great post for buyers (and sellers) to understand the contingencies in a contract.  

Nov 16, 2014 12:33 AM #2
Rainmaker
3,625,125
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Michelle -- terrific post that explains contingencies in a concise easy-to-understand manner.   Well-done.   

Nov 16, 2014 04:12 AM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,342,723

Michelle Gibson

REALTOR
Have a Wellington Real Estate Question?
*
*
*
*
Spam prevention

Additional Information