Make Sure To NEVER Remove These Contingencies When Buying A Home

In today's sizzling TX real estate market, you may be tempted to remove a contingency on your house offer to put yourself in a better position to secure the property. With so many buyers competing for so few homes, it is understandable if you want to make your offer as attractive as possible. Here is a list of the contingencies that you should never remove when looking at homes for sale in Dallas.

Appraisal

The appraisal system is used by lenders to determine the amount of the loan. If a buyer waives this process, they commit themselves to paying the contract price. This could translate to a buyer paying more for the home than the appraisal value. If there is a gap in this amount, it will be up to the buyer to come up with the additional funds needed beyond what the lender is providing. If the appraisal comes in lower than expected, you will be in a better position to negotiate further with the seller.

Home Inspection

Just as important as the appraisal is the home inspection. This inspection is performed by an objective professional trained to assess the primary systems and structural components of the property. This exhaustive list includes plumbing and electrical systems, the roof, and more. If you waive the inspection, you will have no recourse should the house present with problems shortly after the sale. You should also be wary of waiving your right to ask the sellers to make repairs should the inspection turn up something suspicious. While you may be able to waive the right to ask for repairs, you should never remove the inspection entirely.

Well and Septic System Inspections

If you are purchasing a rural property, there is a good chance that the home runs on a well and septic system. Like the standard inspection, you should not consider waiving the investigation of these systems. Issues with these systems could be an expensive venture, making it important that you are certain that they are in good working order before moving forward with the purchase of the property.

Loan and Financing

This contingency makes the buyer responsible if they are not able to secure the loan that they need to purchase the home. In the absence of a loan contingency, the buyer may lose the deposit if they are unable to be approved for the financing that they need. The only time that it makes sense to remove this vital contingency is if you know that you are paying cash and will not need to finance any portion of the purchase price.

Removing any of these contingencies may spell trouble down the road. No home is worth getting yourself into a financial hole that you cannot fix.