Home is where the Real E$tate is by Fergus

Here is my list of the various contingencies a homebuyer should consider when writing an offer for a home purchase. I liken a contingency to insurance — it provides the buyer with protection for a specified period of time following ratification/offer acceptance. If something specific to that contingency is discovered, the purchaser will have the opportunity to withdraw from the underlying contract without penalty. Be sure to discuss the timelines for these contingencies with me or your agent/representative. Keep in mind that contingencies can be withheld or removed during negotiation, if and when the situation warrants or makes sense. Home Inspection Contingency This contingency allows the buyer to conduct a professional home inspection within a specified timeframe, typically 5 to 7 days post contract acceptance/ratification. In the DC metro area where I operate, there are two options, an inspection with a ‘right to negotiate’ which affords the buyer the opportunity to negotiate re...

A professional home inspection, written in the form of a contingency, affords the would-be buyer protection in the event that there are unforeseen issues with the underlying property. In my experience, at least, this is the most invoked contingency among the various contingencies that are available.   A typical inspection in my area (DC Metro) will cost the buyer anything from $350 to $500 or more depending on the size of the property and can take anything from one hour to two hours on average. Contractually, an inspection contingency can be expressed in two ways: 'Right to cancel' which affords the buyer the opportunity to withdraw from the contract, no questions asked… or the more buyer friendly 'right to negotiate' which gives the buyer the chance to negotiate the cost of would-be repairs and or withdraw from the contract. If the buyer/s back out/walk within the contingency period (typically 3 to 7 days), the attached insurance policy in the form of an earnest mone...