What Are Contingencies and Why Do They Matter?
When buying or selling a home, contingencies are one of the most important, and often misunderstood, elements of a real estate contract. A contingency is a condition that must be met before a sale can move forward, and they exist to protect both parties throughout the transaction. The most common include the inspection contingency, the financing contingency, and the appraisal contingency, each serving as a safeguard at different stages of the process. In a competitive market, buyers may consider waiving or shortening certain contingencies to make their offer more attractive, but this decision should always be made carefully with the guidance of an experienced agent. Knowing how to balance protection with competitiveness can make all the difference in a successful transaction. As your experienced, local real estate agents, we can protect you when it comes to the inspections, appraisals, and financial qualifications of the buyers. Please call today, and we’re happy to share how we protect you!
- When you need to work on your credit. Maybe your credit score is just starting to recover, but you need more time to pay down debts for a couple of years. With rent-to-own, you could start investing in a home while you bring up your score.
- You’re close, but not quite ready to secure a mortgage. You might have a good job with a significantly bigger salary, but you haven’t been there long enough for a lender to consider it a stable source of income. Or maybe you’re self-employed and you’re still building a reliable track record. Rent-to-own allows time to build personal wealth and financial credibility while working toward your homeownership goals.
- When you know you’re going to buy when the lease expires. If you’re not ready to buy when the lease expires, then you will lose any rent credit, i.e. investment, you’ve put into the home.
