Contingencies for Northern Virginia Home Buyers
Some say that as a Northern Virginia home buyer there are really only three contingencies you need to be familiar with, but that is not always the case. There are many contingencies that can be tied to a home purchase and since every Northern Virginia home buyer, situation, and property is different, you may benefit from a contingency someone else will have no need for.
- General Inspection – This clause allows you to have a professional fully inspect the property. This is a necessary contingency because it gives you an excuse to get out of the deal if something is found to be seriously wrong. Alternatively, it can aid in negotiating, especially if you want minor repairs handled before you move in. Don’t be tempted to skip this contingency because the house is brand new or looks perfect on the surface. Things are not always as they appear to be.
- Mortgage Appraisal – Unless you have been pre-approved (not prequalified) there is no guarantee that the loan request will be granted. A mortgage appraisal contingency lets you back out if financing can’t be secured or if the lender is only willing to approve a lesser amount.
- Appraisal – Sone link the appraisal and approval contingencies together while others think of them as being separate. Either way, the appraisal clause allows you to hire a professional to appraise the home so you aren’t obligated to follow through with the purchase if the appraisal is for less than what you have offered to pay.
- Attorney Review – Unless you are well-versed in real estate lingo, financing and legal terms you will want to have an attorney review the contract. This clause allows you to have this done in a specified amount of time.
- Sale of Buyer’s Home – Do you need your home to sell first to finalize the deal on the new one? If you are not able to sell your home in a specified amount of time, this contingency gets you out of the contract without paying a penny.
- Disclosures – Sellers have to disclose known problems about the house. They also need to be honest about any known issues in the area that could hurt property value, such as a bus stop being installed right in front of the home or a jail being built down the road.
Contingencies are designed to protect you as Northern Virginia home buyer. They can also be valuable to use during negotiation. Always speak to your agent about your contingency options before signing a contract.