Getting an offer without contingencies can be a big deal for buyers. It can make the home look more appealing, and it could help them avoid being locked into a house that needs repairs or other issues. However, not all offers are created equal. Here are some tips to help you make the right decision:
Do not Waive Your Contingencies
If you want to get a great home for a reasonable price, it is important to make sure that all the conditions you’re agreeing to are in place. By waiving your contingencies, you risk losing your earnest money deposit or getting locked into a home that needs expensive repairs. If you do not have the funds to do these things, it’s best to make a contingent offer so that you can protect your financial interests and avoid losing your earnest money deposit.
You can also make your offer more competitive by adding a home sale contingency to your purchase agreement. This will give you time to sell your current home before you have to sign the purchase agreement. You can ask the seller if they are willing to allow you to add this to your contract. More info https://www.companiesthatbuyhouses.co/maine/home-buying-company-bangor-me/
No Financing Contingent Offers
Some sellers prefer to get an offer with no financing contingencies because it is less stressful for them and for the buyer. This is especially true in a hot market where buyers often have competing offers.
A buyer may want to put in a non-contingent offer because it allows them to buy allcash if they cannot secure financing. This is a common scenario among first-time homebuyers, who are more likely to have cash available and can therefore afford the risk of not being able to get a mortgage.
It is also a common strategy for investors and flippers, who want to remove the appraisal and financing contingencies so that they can make an offer on the home at a lower price than other buyers.
The buyer may also be more interested in making an all-cash offer because it saves them the trouble of having to find financing, which can take time. In addition, it eliminates the risk of financing falling through, which is a common cause for real estate contracts to fall through. Must visit https://www.ibuyers7.com/maine/ibuyer-bangor-me/
In a hot seller’s market, buyers are often forced to release their contingencies so that they can be more competitive. These contingencies include the appraisal, inspection and loan.
While the market is still strong, it is not safe to waive all the contingencies to win a bidding war. These offers are typically not advised for first-time homebuyers, as they may lose their earnest money deposit and end up with a property that needs extensive repairs.
Another issue is that the buyer may be in a hurry to move into their new home. If they choose to go with a non-contingent offer and their financing falls through, it will be difficult to find a comparable home in the same price range.