Keller Williams South Bay
Stephanie Arbolida, Keller Williams South BayPhone: (310) 892-5940
Email: [email protected]

5 Common Contingencies on Home Offers

by Stephanie Arbolida 08/25/2019

Contingency in real estate means an agreement of sale that must take place to continue the transaction. There are numbers of options that buyers can include in their contracts. Below are five common home offer contingencies to consider:

Inspection contingencies

Inspections are of great benefit in the process of buying a home. They enable the buyer to know the exact condition of the property. Most home buyers know inspections cover the general examination of all the systems of the home as well as checking the interior and the exterior. Apart from that, there are other inspections like checking for damages from wood-destroying insects. The inspection contingency comes into play once all the necessary checking is complete.

Financing contingencies 

Financing contingency is essential if you are buying your apartment through a mortgage. Financing contingency gives you the opportunity and time to apply for home purchase financing. The financing contingency states that if you are unable to secure a loan for the purchase of your home, you are eligible to look for other alternative means or you back out from the sale. 

Appraisal contingency 

Appraisal contingency and financial contingency work hand in hand. One of the requirements for granting a loan by most mortgage companies is a satisfactory appraisal. Do not forget that the evaluation is what shows the fair market value of a property. Therefore, an appraisal contingency is significant because it protects you in a situation where the sales price is not at par with the fair market value.

Home sale contingencies 

The home sale contingency is the favorite among property buyers. This contingency gives you a specified period to locate a buyer for your home. If this is not achievable within the stipulated time, you have the privilege of abandoning the sales without anything happening to your money. However, this contingency is not popular among sellers, so not often practiced.

Title contingencies 

Title contingency is also significant in real estate investment. A title to the home is a record that gives information about the ownership of a property. It is a legal document that indicates the people that have owned a property in the past and present. Apart from that, it also gives a record of any judgment made in the past regarding the property.

Be sure to read up and educate yourself on various contingencies that could apply to your sale agreement, so you always have protection. Let your real estate professional advise you about appropriate contingencies to accept and ones to avoid.

About the Author
Author

Stephanie Arbolida

 You might be surprised to learn that I’m a third-generation Real Estate professional. I was introduced to Real Estate as young girl as my father, grandmother, stepmom and brother all worked in the Real Estate Industry. All doing something different which made me so versatile in my sales position. Although, I didn't plan on selling Real Estate it wasn’t until I wanted to start a family, that I then realized I should become a Realtor. You can say I've been selling Real Estate almost all my life, if you include all the years, I helped my family. Selling Real Estate truly became a passion of mine in 2015 when I had my first child. I got licensed right before my husband and I found out we were expecting, timing couldn’t have worked out any better for us. Although, I had my license I didn’t sell much for the first couple years. I did enjoy helping friends and family buy and sell Real Estate. In 2018 I decided to sell Real Estate full time. My business changed that year with the help of my family, friends and clients I was able to build a bigger business than I expected. Not only did I create a more amazing business for myself, I expanded and built my team, The Arbolida Group. I was also asked to join some amazing leadership communities and named in the top 20% of Realtors within the Keller Williams South Bay Office. My Keller Williams Office asked me to join The Agent Leadership Council. The ALC allows me to stand out and help build and grow leaders within our office and community. I was also asked to be the Program Director for The Women's Council of Realtors South Bay Network. I am grateful that I have been given a tremendous amount of trust from my family, friends, clients and company. With all the trust I have become the agent that I am. It allows me to build strong and lasting connections with the community and all my clients. I strive to be the best mom, wife, Real Estate professional, leader and role model. I am always learning and ready to go above for my family, friends, co-workers and even more so for my clients. My clients almost always end up becoming amazing close friends and I wouldn’t have it any other way. I love my job and I love nothing more than matching clients with their dream home and completing their dream of becoming a home owner.