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3 Factors That May Kill Your Real Estate Transaction
When leaping from renting to buying, it’s best to be organized and proactive regarding the terms of the sale and the condition of the house. Contingency clauses specify certain financial or physical conditions of the house that must be met by the seller before the sale can proceed, and here are three types that can impact a transaction.
One of the most common contingency clauses is to require a favorable inspection from a professional who evaluates the property’s foundation, roof, HVAC, plumbing, and more. Then, the buyer and seller can negotiate any possible repairs or compensations.
An appraisal is an estimate by a third party to determine the house’s worth, and an under-appraised house gives buyers the chance to walk away. However, sellers can then offer to cover the difference between the appraisal and selling price.
This contingency has to do with buyer financing, and if the buyer cannot ensure a loan from a lender, bank, or other mortgage company, they can walk away from the sale. However, the seller will often need to be compensated for the time that their house was off the market.