How to Safeguard This Big Investment

Dated: June 1 2018

Views: 277

How to Safeguard This Big Investment

Purchasing a home is one of the largest financial commitments you'll ever make, and it's understandable to want to protect your investment throughout the purchase process. When you're ready to make an offer on a home, adding a contingency to your contract can give you time to assess the property and feel confident that it is a sound investment.

Here are five contingencies that can safeguard your investment:

1. A financing contingency ensures you're not on the hook if something goes awry with your loan. If you're unable to secure a mortgage or the terms and conditions change significantly during the contingency period, you can back out without any penalties.

2. An inspection contingency gives you a set time frame to have a professional home inspection done on the property. Should issues be found, you can negotiate with the seller to make repairs or adjust the sales price to account for the home's condition. 

3. An appraisal contingency protects you if an appraisal comes in below the sales price. When this happens, it's up to you to make up the difference, either by securing additional financing, paying it out of pocket or renegotiating the deal. If none of these methods work, the contingency allows you to back out without losing your earnest money.

4. A home sale contingency is crucial if you're selling an existing home while buying a new one. Essentially, it says your purchase relies on your ability to sell your current home by a specific date. If you haven't accepted an offer in that period, you can withdraw and get your earnest money back.  

5. An occupancy contingency protects you should you need to move into your new home by a specific time. It gives you possession of the home on the date you specify. 

It's no secret that today's housing market is a competitive one, and bidding wars can be intimidating. Get in touch today to ensure that your bid stands out and your investment is protected. 

Blog author image

Victoria Brooks

I am available 24/7 to assist you with all your real estate needs at 208.440.8541. email me at victoria@idahoplaces.com Idaho is my home. I love helping those who wish to move here and enjoy all that....

Latest Blog Posts

New Listings Jump 5.1%; Price Adjustments Moderate

September 3, 2021More homeowners are listing their homes for sale, which is opening up options for anxious home buyers who have faced fierce competition the last few months over a limited housing

Read More

Mountain Region Sees Rapid Run-Up in Home Prices

©Anna Gorin - Getty Images U.S. home prices continue to rise, and homeowners in some pockets of the country—notably in the mountain region—are seeing some of the highest

Read More

How to Win a Bidding War in a Seller's Market

How to Win a Bidding War in a Seller's MarketBy John MeussnerMortgage and Lending with Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, NMLS #138061 MMCD

Read More

8 Tips to Sell in the Dead of Winter

Photo by Ian Keefe on UnsplashWinter can still be a good time to sell a house, but you may have to work a little harder to make the space appear cozy, warm, and inviting against the dreariness of

Read More