Buying a home can be one of the most stressful events in many peoples lives. It is a large investment, the largest that most people will make. It is also one of the most rewarding on many different levels, not the least of which is financial. In our dealings as a real estate company we have noticed that most buyers have 3 common fears when purchasing a home.
1. What if the home is in bad condition?
2. What if the home is not worth it?
3. What if the bank won’t give me the money?
The good news is that the common buyers’ fears also happen to be three of the most important protections in the standard California Association of Realtors Residential Purchase Agreement. They are called contingencies. Miriam Webster defines a contingency as: something liable to happen as an adjunct to or result of something else.
So what does this mean? Well at its most basic it means that the buyer is protected. For example after you find a great Long Beach home, write an offer and it gets accepted one of the first things you as the buyer would do hire an inspector to conduct a physical inspection. Let’s say that a major issue is found, something like a crack in the foundation. Well, you would be protected by the inspection contingency! Essentially the contract says that if you uncover a material fact or defect in the home you are not obligated to buy the home. You could cancel the transaction and get back any deposit you have at escrow. Now, you don’t necessarily have to cancel the transaction. You could still buy the home as is or you could ask the seller to make a repair. Regardless you have the protection built into the contract.
This would also apply if the property doesn’t appraise or if the bank can’t lend you the money. Obviously this is a very general overview and the contingencies are laid out in the contract with very specific protocol. One of our great DOMA Properties real estate agents will help you navigate through the entire process.
Call us today to talk to one of our experienced real estate agents if you are thinking about buying or selling a home.