7 realities your buyers and sellers should prepare for in 2021

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What is a home appraisal gap?

Housing Wire

When you go to buy a home , your mortgage lender will almost always order a home appraisal. Scenario 1: Your home appraises at your full offer price. Many times, the home appraisal goes off without a hitch. Scenario 2: Your home appraisal comes in low.

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How much cash matters in a bidding war

Housing Wire

And waiving the financing contingency is the second-most effective bidding-war strategy, Redfin officials said – improving homebuyers’ odds of winning by 66%. When there’s a bidding war, cash is king.

Pros and Cons of Removing Contingencies Early

RIS Media

So should your clients submit an offer with no contingencies to maintain an edge over competing offers? Here’s a look at the pros and cons of removing contingencies early: Pros. The post Pros and Cons of Removing Contingencies Early appeared first on RISMedia.

20% of Winning Home Offers Waived the Inspection Contingency in June, Up From 13% Last Year

Redfin

markets waived the inspection contingency, compared with just 13.2% Winning offers waived the appraisal contingency at a similar rate—20.6%—up The inspection contingency allows the buyer to cancel a purchase or request repairs if they find an issue during the inspection period.

WHAT A RIDE!

The Living Room

With the offers rolling in over our first weekend on the market and the values skyrocketing above objective comparison, appraisal contingencies and financing terms became incredibly important. As the new year set in, it became clear that a perfect storm was forming.

The Top 9 Contingencies to Consider in Your Offer When Buying a Home

Redfin

Before you do, take time to consider all the potential risks and home-buying contingencies that will help protect you as a buyer. Though you can technically add any contingency you want to an offer, here are the 9 most common homebuying contingencies to consider.

Buyers are sweetening the deal by waiving contingencies

Realty Biz

With home buyers facing tougher competition this year amid ongoing housing shortages, some are trying to gain an edge by waiving contingencies to make their offers look more enticing. markets waived the inspection contingency , compared to just 13.2%

Why Making a High Offer to Beat Out the Competition Can Backfire

RIS Media

Appraisal Problems. The amount a lender will loan you is based on the appraised value of a house. If you agree to a sale price that’s less than the appraised value, you’ll have to pay the difference out of pocket.

How agents are winning bidding wars in America’s most competitive markets

Housing Wire

and I counseled my client to bid accordingly, waive his mortgage contingency, then we bid $1.45 Another critical element, according to agents, is not to make the deals contingent upon things like inspections and not to “nickel and dime” the seller.

Listing Agents Are Getting a Little Whacky in the Burbs

The Living Room

Can you have them waive their appraisal contingency and release their earnest money up front. Chris has been showing a whole bunch of homes outside of PDX lately – in the cities of Hillsboro, Beaverton, Tigard and West Linn.

3 Top Reasons Why Sellers Sue Buyers for Backing Out of Home Sales

HomeLight

Which contingencies you included in your contract with the seller. What are contract contingencies? So as a buyer, you should have a contingency in your contract to protect you in case you can’t get proper financing for the home. Financing contingency.

What is a Contingent House Listing?

Point2Homes

When searching for the ideal home, expect to encounter a few issues along the way, such as homes listed as contingent. But, what does contingent mean and how does it affect your purchase? A home listed as contingent means the seller has accepted an offer. Contingent Statuses.

Should You Buy a Home With Cash? Consider These 6 Disadvantages First

HomeLight

With cash, there are way fewer contingencies to contend with. Contingencies are conditions that must be fulfilled for a real estate contract to be completed. Two common mortgage-related contingencies are the financing contingency and the appraisal contingency. The financing contingency basically states that the loan has to clear before the purchase contract can be fulfilled. Skipping an appraisal can come with risks.

What is Earnest Money and Why Do You Need It?

Redfin

At this stage, various inspections, appraisals, and possibly other contingencies you had in the offer contact move forward to finalize the sale. . You back out for any reason not listed as a contingency in the contract.

Buyers: Here’s Your Negotiation Strategy for When the Appraisal on a House Comes in Low

HomeLight

But after the appraisal, the tides have turned — the price initially seemed right, but the appraiser doesn’t feel the same way. Do you know how to negotiate with a seller after a low appraisal? A low appraisal presents an opportunity for you to negotiate with the seller.

What Does Contingent Mean in Real Estate Sales

Realty Biz

The Definition of Contingent. Do you know what contingent means when either buying or selling a home? For example, if a home sale is contingent or pending, can you still make an offer? For example, some agents will mark your home contingent, while others will mark pending.

What Are Real Estate Comparables

Realty Biz

Many people, including real estate agents and appraisers, use the Multiple Listing Services or MLS to determine the right price for both the seller and future buyers. APPRAISERS: Appraisers utilize similar properties on the market to gauge the true cost of a home.

MLS 90

7 Creative Strategies to Make Your Offers Stand Out in a Seller’s Market

The Close

When writing the offer with this strong of an approval letter, it allows you to have a shorter financing contingency time and more emphasis on the appraisal contingency time frame. Include an As-is Home Inspection Contingency. Strengthen the Financing Contingency.

How Long Does it Take to Close on a House? 11 Steps From Your Offer to Keys in Hand

Redfin

Ideally, your purchase agreement included an inspection contingency. If you do have this contingency in your contract, you can ask your agent to recommend an inspector they know and trust. Get the appraisal report.

Buying in a Seller’s Market: 9 Ways to Win

Redfin

If you don’t have to use a lender, there’s no financing contingency, which shows the sellers that you will most likely not pull out of the deal due to financial issues. 7) Waive Extra Contingencies. What is a Seller’s Market?

Maui Luxury Home Buying Tips

Luxury Real Estate Blog

Things to consider are home inspections, appraisals, contingencies and more. . Maui Luxury Home Buying Tips. . Launiupoko Maui. It has been a bit of a challenge in the Maui Luxury real estate market due to low inventory. Visitors have returned to Maui, along with the good weather.

How to Make Your Offer More Competitive!

CT Homes

Reduce/Waive Contingencies. In the eyes of the seller, buyer contingencies are potential obstacles to an easy closing. The more of these contingencies you can remove upfront, the more likely you are to close. Inspection Appraisal Financing.

Buying Your House With Cold, Hard Cash? Here’s Your Step-by-Step Guide

HomeLight

When you make your cash offer, consider including contract contingencies to protect yourself in the deal. A contingency means that you’re willing to purchase the home contingent on certain details checking out. Consider an appraisal.

Why 2 Finance Experts Still Struggled To Buy This House

Realtor.com

We offered good earnest money and 15-day escrow , didn’t include an appraisal contingency, and probably had a few other bonuses to the seller that I’ve forgotten. Tony Matheson Think two seasoned certified financial planners would have an easy time buying a house?

House Appraisal Tips: What Home Buyers and Sellers Should Know

Realty Biz

What to Know About House Appraisals. A house appraisal can be concerning whether you are buying or selling a home. The licensed appraiser will check the property to work out the fair market value. Will the appraiser assess the home to be worth what is expected?

How to Win a Bidding War: The 3 Cs of Writing Better Offers

HomeLight

I basically explain, like the five parts on offer are price, earnest money, down payment, close date, and then there’s this miscellaneous bucket which includes a bunch of other things, you know, inspection period, appraisal contingency, repairs, personal property, rent back, etc. Things like waiving repairs, waiving the appraisal contingency. If you want to win more bidding wars, you can’t keep writing offers the same way you always have.

Above, Below, or At List Price? How Much to Offer on a House

Redfin

Additionally, your lender may require an appraisal contingency to make sure the house appraises for the value of your offer. So, you’ve spent weeks house hunting and you’ve finally found the perfect home for you and your family. But how much should your initial offer be?

Pay Now or Pay Later? Breaking Down Cash vs Mortgage Pros and Cons

HomeLight

When you pay cash, you aren’t required to get an appraisal on the home’s value. If you’re purchasing a home in cash, you’ll also avoid the need for a sales contingency (meaning your house has to sell before the deal will go through) in the offer. Then they’ll buy the house on your behalf in cash, eliminating the need for financing and appraisal contingencies.”. It’s one thing to carry credit card debt on a big-screen TV that might otherwise be out of your budget.

What If the Appraisal Comes In Low? 3 Stories About What Buyers Did

HomeLight

You’ve made an offer on your dream house, the inspection didn’t raise any serious issues, so now you only have to get the home appraised and wrap up your home loan, and you can start planning your move. How exactly could an appraisal derail your home purchase?

The Pros and Cons of Making an All-Cash Offer on A House

HomeLight

This is important: if your real estate agent puts in an all-cash offer on your behalf, they will not include a financing contingency. The seller makes decisions based on the terms of your offer, including contingencies. Pro #1: Limited contingencies.

Win More Bidding Wars: The 3 Cs of Writing Better Offers

HomeLight

I basically explain, like the five parts on offer are price, earnest money, down payment, close date, and then there’s this miscellaneous bucket which includes a bunch of other things, you know, inspection period, appraisal contingency, repairs, personal property, rent back, etc.

Win Bidding Wars: How to Write Offers That the Seller and Listing Agent Will Love

HomeLight

That last one, miscellaneous bucket, that includes things like contingencies and rent backs and so forth. I can’t do the three-week close unless I can order the appraisal tomorrow and inspect on Monday. I’m waiving the appraisal contingency.

How to Win a Bidding War: Write Offers the Seller and Listing Agent Will Love

HomeLight

That last one, miscellaneous bucket, that includes things like contingencies and rent backs and so forth. I can’t do the three-week close unless I can order the appraisal tomorrow and inspect on Monday. I’m waiving the appraisal contingency. She’s asking about the appraisal contingency and waiving the home inspection and just generally asking how do you feel about waiving those contingencies as part of the effort to win in a multiple offer situation?

Everything You Need to Know About Making an Offer: 15 Tips for Homebuyers

HomeLight

No sales contingency? Make sure your agent stresses that your offer doesn’t contain a sales contingency. Outline your contingencies. The most common contingencies include: A home inspection contingency to protect buyers’ interests.