The Close

APRIL 28, 2022

Offer an Appraisal Gap. One of the main reasons cash is king in bidding wars is because of the requirement of an appraisal for mortgages. Bidding wars are causing sales prices to rise far beyond what we as agents or appraisers can realistically justify. While this is a top strategy, today many buyers are offering appraisal gaps.

Rent back 105

Rent back Closing costs Finance Agents 105

HomeLight

MARCH 31, 2022

There are several contingency clauses typically found in a real estate contract: Appraisal contingency: This contingency allows you to walk away from the deal without penalty if you’re using a mortgage and the appraisal comes in lower than the asking price. Waive the appraisal contingency. Rent back to the seller.

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Home sale contingency Sales Purchase and sale agreement Inspection contingency 104

Real Trends

MARCH 3, 2022

If you have clients that are thinking about offering, keep in mind that the offers we have already received are well above list price, have waived inspection and appraisal, and are willing to honor the Seller’s request of a free 60-day rent-back.”

Agents 104

Agents Due diligence Inspection Rent back 104

Realty Biz

JULY 7, 2021

If the appraisal doesn’t support the higher offer, you can probably still get the mortgage you are preapproved for, but you’ll need to pay cash for the difference between the appraised value and what you offered above the appraised value. Require a minimal home inspection. Offer to rent back to the seller.

Inspection contingency 87

Inspection contingency Marketing Inspection Rent back 87

HomeLight

MARCH 2, 2023

of the purchase price or appraised value, and borrowers must meet certain income limits, owner-occupy the property, and are required to complete homebuyer education counseling. Do they need to do a rent-back on the house, or do they want a quick close? Loans are between 3%-3.5%

Closing 118

Closing Earnest money deposit Sales Inspection 118

HomeLight

FEBRUARY 4, 2022

Guide you through the steps of due diligence and inspections. While it’s true that a home purchased with a mortgage loan will be evaluated by an appraiser before all is said and done, there’s more to a fair price than a bank’s willingness to loan money. Provide advice on first-time buyer programs and recommend mortgage lenders.

Agents 115

Agents Purchase and sale agreement Due diligence Inspection 115

Redfin

MAY 27, 2021

“The offer also included paying up to $2,000 of the seller’s moving expenses, giving the seller 60 days to lease back their home free of charge, buying most of their furniture, and waiving the appraisal altogether.” . A partial appraisal waiver sealed the deal in this real estate offer. My buyers were overjoyed.”.

Agents 66

Agents Rent back Inspection Closing 66

HomeLight

MAY 24, 2021

This strategy will ensure that if you do need to offer over the asking price, you’ll at least be preapproved for the full amount (though your lender still might balk after the appraisal — more on that later). At the very least, your lender will require an appraisal or financing contingency written into the purchase agreement.

Pre-qualification 111

Pre-qualification Pre-approval Purchase and sale agreement Loans 111

HomeLight

NOVEMBER 10, 2021

They’ll know whether offering a rent-back period could sweeten the deal, or if it’s more common to pay seller closing costs. When it’s time for the inspection, they’ll reassure you that a damp basement is normal for the town, or tell you to get it checked out by a professional. Step 9: Order an inspection.

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Inspection Title Agents Pre-approval 98

Marco Santarelli

AUGUST 12, 2024

Clients are waiving home inspections, offering appraisal gap coverage, letting owners rent back, or even paying the owner’s property taxes for a year—anything they can do to make their offers stand out,” she explains.

Marketing 98

Marketing Rent back Inspection Branding 98

HomeLight

FEBRUARY 28, 2021

There are lots of government contractors, military, and private-sector jobs in this area,” says Arlington property appraiser Rick Phillips, president of Appraisals Guaranteed. To find a reputable appraiser, you can check online resources like The Appraisal Institute , and ask for referrals from agents and home inspectors.

Earnest money deposit 105

Earnest money deposit Land Residential Inspection contingency 105

HomeLight

FEBRUARY 28, 2022

Some sellers will even order their own inspection prior to putting their house on the market, especially if they know the house needs significant work. Price it too high, and you could lose potential buyers altogether, or run the risk of the appraisal coming in low and putting the deal in jeopardy. Decide on contingencies.

Equity 126

Equity Debt-to-income ratio Loans Closing 126

HomeLight

APRIL 29, 2021

Schedule time for the appraisal. Do you need interim housing, a specific closing date, or a seller rent back ? Your buyer will use the home inspection report to leverage a deal. To avoid repair negotiations, some sellers conduct a pre-listing inspection to get ahead of issues and make repairs in advance.

Purchase and sale agreement 98

Purchase and sale agreement Pre-approval Inspection Inspection contingency 98

RIS Media

JULY 8, 2021

Agents can help buyers write the very best initial offer by contacting the listing agent to find out their preferred terms for closing dates and occupancy, rent backs if necessary, financing or cash options, so that they can put the best terms in their initial offer. Be relentless and resourceful.

Marketing 105

Marketing MLS Rent back Agents 105

HomeLight

JANUARY 4, 2022

In addition to the time it takes to underwrite and process a mortgage loan, one of the biggest time savings with a cash sale is the elimination of the appraisal step, according to Owen Dashner , a partner at Red Ladder Property Solutions. Your inspection could reveal a big repair that you did not anticipate, forcing a renegotiation.

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Investor Finance Inspection Sales 98

HomeLight

MARCH 20, 2023

Other common contingency clauses include: Inspection Contingency: If the buyer finds fault with the home inspection report, they can ask for the seller to make repairs, or they can cancel the contract within the contingency period. Offer to accept a rent-back agreement. Allow the sellers to select the closing date.

Home sale contingency 105

Home sale contingency Purchase and sale agreement Sales Earnest money deposit 105

HomeLight

APRIL 17, 2024

Others perform a home inspection while their competitor skips one. Like Opendoor, they typically perform a home inspection before finalizing their offer. In normal home sales, many real estate agents are negotiating rent-back periods for home sellers. But beyond this similarity, how do they stack up? Trustpilot : 4.6

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Seller concession Inspection Rent back Closing 115

HomeLight

APRIL 21, 2022

Cash vs. financing : Cash offers usually result in a faster sale than mortgage-backed offers; if speed is an important aspect of the sale, this could make a significant difference. Common contingencies include an inspection contingency and an appraisal contingency. Does the offer meet your primary selling objective?

Inspection contingency 111

Inspection contingency Home sale contingency Pre-approval Agents 111

Hank Miller Team

FEBRUARY 27, 2022

Princes are conventional loans with as much down as possible Offer 3-4 in earnest money and deposit it within a day of contract Waive contingencies like inspection, appraisal, and financing Learn what is key to seller and try to accommodate them Keep things simple, no nonsense stipulations or asks This is the market right now (late 2/22).

Due diligence 52

Due diligence Rent back Inspection Loans 52

HomeLight

JANUARY 28, 2022

Appraisal contingency : The buyer can back out if the home appraisal comes in lower than the offer amount (an appraisal lower than offer can also cause financing to fall through). Unlike a normal buyer, they won’t negotiate closing dates, offer a rent back period, or make other concessions.

Purchase and sale agreement 111

Purchase and sale agreement Investor Agents Sales 111

HomeLight

JANUARY 7, 2022

As you finalize the sale on your property with a home inspection, appraisal, and all other necessary steps, you will most likely be doing the same for your new home. Here are some other benefits of an extended closing: More time to resolve any issues with the home appraisal. Option 9: Ask for a rent-back clause.

Equity 105

Equity Loans Debt-to-income ratio Closing 105

HomeLight

MARCH 28, 2022

Although it’s not a substitute for a home appraisal or an agent’s comparative market analysis (CMA) , it can be a helpful starting point in a quest to determine how much equity you have. Also known as a seller rent-back agreement or a holdover , this allows you to stay in your home for a designated period ?of

Purchase and sale agreement 119

Purchase and sale agreement Equity Agents Staging 119

HomeLight

SEPTEMBER 11, 2020

Your offer will be stronger if you build in some wiggle room relating to factors that might seriously entice the seller to pick you: Can you offer rent-back? The offer will include any contingencies — clauses that allow you to cancel the purchase agreement and get your earnest money deposit back, should certain conditions not be met.

Earnest money deposit 98

Earnest money deposit Purchase and sale agreement Inspection contingency Home sale contingency 98

Redfin

FEBRUARY 2, 2021

Earnest money protects the home seller in case a buyer backs out of a home sale after the offer was accepted. Unless a homebuyer backs out due to something coming up in a home inspection or appraisal, the seller will get to keep the earnest money. 9) Be willing to make concessions during negotiations.

Pre-approval 66

Pre-approval Purchase and sale agreement Marketing Inspection contingency 66

HomeLight

OCTOBER 12, 2020

That last one, miscellaneous bucket, that includes things like contingencies and rent backs and so forth. I’ve gonna give them free rent back. High price, short inspection period, quick close. I can’t do the three-week close unless I can order the appraisal tomorrow and inspect on Monday.

Agents 98

Agents Inspection Inspection contingency Pre-approval 98

HomeLight

OCTOBER 5, 2020

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.

Agents 97

Agents Backup offer Inspection Rent back 97

Redfin

MAY 7, 2021

You can also consider requesting a rent-back agreement from potential homebuyers. A rent-back agreement means that the homebuyer purchases your home and you rent it from them for a specified period of time. In addition, you could waive the inspection and appraisal contingency.

Purchase and sale agreement 80

Purchase and sale agreement Marketing Equity Rent back 80

HomeLight

MARCH 15, 2021

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.

Agents 81

Agents Backup offer Inspection As-is 81

HomeLight

MARCH 22, 2021

That last one, miscellaneous bucket, that includes things like contingencies and rent backs and so forth. I’ve gonna give them free rent back. High price, short inspection period, quick close. I can’t do the three-week close unless I can order the appraisal tomorrow and inspect on Monday.

Agents 75

Agents Inspection Inspection contingency Pre-approval 75

Real Trends

JULY 15, 2022

This could involve a quick settlement, a rent-back offer, a home inspection without repairs, or doing away with other contingencies. A good lender will assure that appraisals are done on time, the financing commitment is done correctly, and that all the boxes are checked so you won’t have an issue with the financing.

Loan Officer 52

Loan Officer Agents Rent back Loans 52

Redfin

JULY 28, 2020

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. In June, 19.9% up from 17.4% in April. “I

Inspection contingency 59

Inspection contingency Inspection Purchase and sale agreement Pre-approval 59

HomeLight

DECEMBER 15, 2022

If the appraisal comes in low , or the home inspection reveals major issues, you might want some wiggle room for negotiations. For many of them, they want a short inspection period, such as three to five days, a quick close, i.e. 30 days, possibly a rent-back option , or for the buyer to waive the inspection or appraisal contingencies.

Inspection 105

Inspection Rent back Closing Agents 105

Housing Wire

APRIL 23, 2025

Waive the home inspection contingency I would never actually recommend this strategy as a buyers agent; however, there are some situations where a buyer will insist on waiving their inspection, and it makes sense for them to do so. As agents, its our job to educate our clients about the dangers of not doing a home inspection.

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Inspection contingency Inspection Pre-qualification Pre-approval 333

Realty Biz

MAY 16, 2022

Waive Your Home Inspection. Waiving a home inspection is somewhat of a gamble but the odds you’re buying a home with some catastrophic problem is low. If you have been in numerous bidding wars and continue to lose out, one of the significant factors is probably other buyers forgoing the inspection.

Earnest money deposit 96

Earnest money deposit Purchase and sale agreement Rent back Inspection 96