When the housing market is up and sales seem to favor sellers rather than buyers, negotiation contract contingencies may seem like a lost cause. But there are always cases where you as the buyer can effectively negotiate purchase protection into the contract of your home, and you may even be able to convince your seller to throw in a few perks. Here are some tips to negotiating contract contingencies from the seller. Common Contract Contingencies Knowing what contingencies are often included in home purchase contracts is the first step in getting what you want from the seller. There are a number of contingencies that are commonly included in contracts, and while this list is not exhaustive, it can give you a good idea of what you may want to consider. Appraisal—This is usually required by your lender, and while traditionally it is the responsibility of the buyer, you can get it covered by the seller. Home Inspection—This important step can find any major problems with the house or property that could cause a decrease in value, or make it an unwise investment. Loan Contingency—This is a term in the purchase contract that allows a buyer to back out of the […]
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There is perhaps no more exciting and nerve-wracking time in the home buying process than when you decide to make an offer on a home. If it is accepted, you will be on your way to owning a new home—if not, you will be forced to make some difficult decisions. Your REALTOR® will help you get through the process of making an offer on a home. He or she can give you advice on how much to offer and what concessions you will make. But there are a few decisions you will have to make yourself, and be prepared to stick to them. How High Will You Go? If your initial offer on the home of your dreams is rejected, the seller will usually come back with a counter offer. In most cases they will ask for a higher purchase price and may refuse some of the items you requested in your initial offer, such as repairs to be done to the home prior to the sale. This is a normal part of negotiations, but especially for first time buyers it can feel like a very frustrating process. When the counter offer comes back, you will have to decide if […]
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