The three contingencies are:
(1) Contingent on the property being appraised at a minimum for the contract price. Why is this important? Let’s say your contract price is $300,000, and you plan to get an 80 percent loan in the amount of $240,000. You plan to put down your own money in the amount of $60,000. But if the appraisal comes in low, say at $275,000, your lender will lend you only $220,000; this means that you will need $20,000 more to close the deal.
(2) Contingent on financing: This is obvious. If you cannot get a mortgage loan, you want to have the contract declared null and void and get your deposit back; and
(3) Contingent on a satisfactory home inspection. You don’t want to buy the property only to find out that a new roof is needed, or that the electricity is not up to par, or that the plumbing does not function properly. If your seller objects to such a contingency, run (do not walk) away from the deal.
If you have any real estate questions or if you are thinking of buying or selling your home, please contact James Louie Chung, Greater Vancouver REALTOR® — Real Estate Agent at [email protected] or call / text ( 6 0 4 ) 7 1 9 — 6 3 2 8 today!
Source, Photo: Inman, Design.Shuffle