Contingencies: Your Homebuying Safety Net (And How to Use Them Right)

Contingencies: Your Homebuying Safety Net (And How to Use Them Right)

Let me tell you something - contingencies are like the emergency brakes on your homebuying journey. You hope you never need them, but when you do? Thank God they're there. I've seen too many buyers skip these and end up in absolute nightmares.

Here's the deal - contingencies are your "get out of jail free" cards if something goes wrong with the house or your financing. And in today's market? You better believe you want these in your contract.

The Big 3 Contingencies You Need to Know

  1. Inspection Contingency

    • This is your chance to bring in a professional to poke around and tell you everything wrong with the house.

    • Pro tip: I always say an inspection is like dating - you're about to hear all the good, bad, and ugly before deciding if you want to spend the next 30 years with this property.

    • "Yellow flags" (like a cracked porch step) might be livable. Red flags (like foundation issues)? Run.

  2. Mortgage Contingency

    • Translation: "If the bank won't give me the money, I'm not on the hook."

    • Crucial because unless you're paying cash, you don't want to be legally bound to buy a house you can't afford.

  3. Appraisal Contingency

    • Protects you if the house appraises for less than your offer.

    • Example: You offer 510Kbutitappraisesat480K? This contingency lets you renegotiate or walk away.

How Long Do You Get?

Timing is everything with contingencies:

  • Inspections: Usually 7-10 days after offer acceptance

  • Mortgage approval: Typically 30-45 days (but some lenders can do faster)

  • Appraisal: Often tied to your mortgage timeline

I had one client who waived all contingencies to "look strong" - then found $50K in foundation repairs during the final walkthrough. Don't be that person.

The Radon Wildcard

This one surprises people. Radon is that invisible gas that can seep into basements. In some areas, it's no big deal. In others?

  • VA loans always test for it

  • Some buyers add specific radon contingencies

  • Fixing it usually costs 1,2002,500

Funny story - I had European buyers who laughed at our radon concerns. "Our castles have had worse for 800 years!" But hey, better safe than sorry.

Watch Me Break It Down

Video Timestamp: 00:14:22 - 00:25:25

Coming up in Part 4, we're tackling the emotional rollercoaster of final walkthroughs - where I've seen missing stoves, bullet holes, and why you should NEVER do yours more than 24 hours before closing.

#Realtor #RealEstateAgent #FirstTimeHomeBuyer #InvestmentProperty

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