When you’re ready to buy a Northwestern Wisconsin home, your purchase offer should include some practical contingencies. A contingency is a specific condition that must be met to close the deal. Without contingencies, backing out of an accepted offer can be problematic and expensive! Here are 3 common contingencies home buyers should know.
A financing contingency states that your offer is contingent on a mortgage approval. The wording can state the type of mortgage, the term, the down payment and the highest interest rate you will accept. This way, you’re not stuck accepting an undesirable mortgage with higher costs.
A home inspection contingency gives you the right to have the home condition visually examined by a third party. If you have specific concerns about the home, such as the septic system, you should include detail about the testing you want performed, and the results you will consider acceptable.
An appraisal contingency gives you the right to exit the deal, or re-negotiate the deal, if the lender’s appraisal comes in for a lower amount than the sales price.
Contingencies should be used carefully and with good intention. A seller may refuse your offer if it has too many contingencies, or if the contingencies are worded poorly. You need to cover your own interests while making your offer attractive to the seller. We can help!
When you are buying or selling Northwestern Wisconsin real estate, turn to the experts at Six Lakes Realty! We are a locally-owned family business with over 40 years of experience. Contact us today for friendly, hometown service!
Six Lakes Realty
Office: (715) 924-4806