Investing in a home for sale can be a nerve-wracking process – after all, this is the biggest investment you’ll probably ever make!
Luckily, when you work with experienced Plymouth REALTORS® like us, the experience can end up being considerably less stressful and tiresome than you imagined.
Today, we’d like to share with you some tips on how to craft the perfect home buying contract with the help of contingencies.
Investing in Plymouth, Michigan Real Estate
A contingency is a clause in a contract that makes the sale of a home conditional upon certain outcomes.
If those outcomes don’t happen, the sale doesn’t occur and you’re able to get out of the contract penalty-free.
Here are some common contingencies that we see in Plymouth home purchase contracts:
- Appraisal: The home appraises for at or above the loan amount you were approved on.
- Loan: Your mortgage application was approved.
- Home inspection: The home inspection came back and there were no major issues. And if there were, you and the seller agreed on who pays for the repairs.
- Lead-based Paint: The home tested negative for lead-based paint. Home buyers have 10 days to inspect for this according to federal law. It should be noted that most homes built before 1978 probably have lead-based paint.
- Wood-destroying pests: The home is found to be free of termites and other wood-destroying pests.
- Roof Inspection: The home does not have any major roof issues.
- Sewer Inspection: The home’s sewer system gets a satisfactory inspection report.
- Radon, Asbestos or Mold: The home does not have any of these nuisances/hazards.
- Early Occupancy: The seller has agreed to let you rent the property before the close of escrow. This is also known as early buyer possession.
- HOA Documents: The seller has provided all documents associated with the homeowners association upon your request, including meeting minutes.
- Sale of Existing Home: You have sold your current home and are thus freed up to purchase your new home.
Your Dedicated Plymouth, Michigan Real Estate Experts
Contingencies like the ones described above take the guessing out of the home buying process and provide you with a safeguard.
For more information on other types of contingencies you could include in a purchase contract, please contact us at The Bittinger Team.
We’lll be more than happy to assist you with all of your home-buying needs by offering helpful advice as well as such resources as:
Until next time,
Noel