One of the biggest and most important decisions you can make is purchasing a home. Now, if you’re a first-time home buyer, you wouldn’t want to skip taking the right measures. Although these contingencies are frequently “waived” in competitive markets, individuals who embrace its significance benefit from it by granting them the right to end a contract if the conditions aren’t met. Statistics from the National Association of REALTORS® (NAR) reveal that in 2021, contingency waivers soared mid-year then started a slow decrease. Considering this, it can be said that contingencies work efficiently for both buyers and sellers.

The Bottom Line:

When buying a home, contingencies in a real estate transaction help protect buyers by securing their sale but also protecting them in case they choose to back out of the sale after learning more about the property. However, contingencies can be waived as a negotiation talk which is a common situation in a bidding war. Some sellers will not accept all the clauses or contingencies included, so it’s wise to be cautious about which contingencies you choose to include. As a homebuyer, you have to make the most competitive offer possible. So now that you know all about contingencies, you’ll also want to do what you can to improve your bargaining position.

What To Do:

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