Before a first-timer has experienced the complete home-buying process, given the number of unknowns that seem to be dependent on one another, they’re bound to be at least a little baffled. What if there are unseen problems with the house? What if the home loan company decides not to cooperate? What if—well, who knows what other snags could pop up? Common sense tells them there must be ways to address all the unknowns; otherwise, no one would ever be able to buy a home.
The most common way to deal with the unknown possibilities is to seek the help of an experienced Costa Mesa Realtor® like yours truly. And in fact, the majority of the greatest risk factors can all be tamed by a single concept—one that is built into almost every formal offer to buy. The concept is the “buying contingency”—a built-in fail-safe every homebuying veteran knows well. There are usually multiple contingencies built into every offer to buy. Each one addresses a what-if circumstance that allows the buyer to either opt out or alter the offer. Here are five areas where contingency clauses serve to alleviate buyer anxiety:
1. Financing. If a buyer isn’t planning on paying with cash, a home loan will have to be arranged. If it cannot be arranged in a timely manner, a financing contingency may relieve the buyer of being penalized for the failure to close.
2. Appraisal. This is usually part of the financing situation. If the Costa Mesa lender’s appraiser arrives at a value lower than what would warrant a sufficient home loan, this contingency may allow for a renegotiation of the price and/or a cancellation of the deal.
3. Inspection. If the buyer’s professional inspector’s report discloses interior or exterior faults that were previously unknown, depending on the extent of the problems, this contingency addresses what happens next. If negotiations fail to yield a satisfactory solution, the buyer can back out of the sale.
4. Title. This contingency addresses possible “clouds” or undisclosed liens or judgments against the property.
5. Home sale. First-timers don’t need to worry about this one—but for existing homeowners, this allows a buyer sufficient time to sell their own home. If no buyer surfaces, it allows the buyer to avoid having to pay for two homes at once. The downside is that the seller may choose a competing offer (even one for a lower sale price) if it doesn’t contain this contingency.
Multiple contingencies are effective ways to relieve buyers of risks that would otherwise prevent a free-flowing market. When you give us the nod to help you find and negotiate your first Costa Mesa home, they are among the many details that we’ll be able to clarify as we encounter them. Call!
We are built on a philosophy of Heritage & Hustle. L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, L3 has grown to a full staff of 25 serving over 300 clients a year. L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at email@example.com