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Fewer Buyer Contingencies Bring Fewer Headaches

Written by Posted On Thursday, 28 April 2016 10:07

Buyers HeadacheIn the Palm Springs California Desert where I represent buyers and sellers, contingencies can make or break the sale!  When you make an offer on a property, there will be several contingencies written into the contract. Others may be added. What are they and how do they affect the deal?

A contingency is a provision that says that certain conditions must be satisfied or certain things must happen for the sale or purchase of a property to proceed. In our area, ALL Contingencies must be removed within the first 17 days of an accepted offer. Loan contingencies must be removed within 21 days of the offer. When you are buying or selling a house, carefully written contingencies make everyone's rights and obligations clear. It is the best way to avoid disputes later.

Probably the most common contingency involves the house inspection. The buyer is strongly encouraged to have a professional home inspection.  In our area, if a buyer refuses to have an inspection, they must sign a waiver stating they have been advised to have one, but have chosen not to have an inspection. The inspection will point out various things from code violations to cosmetic defects. The buyer has the right to ask for repairs to any part of the property that is defective. The seller may then agree or not, depending on the circumstances. In in many cases, contingencies can be negotiated between both parties on certain items.Money Tree from Contingencies

I remind my buyers they are not buying a new home. They should not ask for every small cosmetic feature to be fixed. However, if the report shows some serious areas of concern, like an AC that is not working or roof in need of repair, I recommend they ask for these items to be repaired prior to closing. If the seller refuses to do any of these serious requests, the buyer can then back out of the sale. On the other hand, once the item has been noted, the seller must now disclose these previous findings to future buyers since it is now a known defect or item in need of repair. Code violations also need to be addressed at this time. Most lenders will not close unless these items have been corrected.

Another common contingency is financing. A financing contingency protects the buyer and can contain very specific details about financing, specific types of loans and so forth. A buyer might ask for a contingency that states that the seller will complete some unfinished work as promised. Another contingency you might see involves the seller's ability to buy another house. Some buyer contingencies state that the house they own be sold first. I advise my sellers not to accept this contingency unless the buyer is already in escrow, their buyer on their home has removed all contingencies, and their buyer’s loan has been approved.

I strongly advise my sellers not to accept any offers where the buyer has not been pre-approved beforehand and they can show they have ample funds to close. In our area, if a seller accepts an offer before being assured the buyer can perform, they only have three days to provide these conditions, but it is far better to have buyers approved for a loan before they start shopping for a new home. It makes the buyers offer so much stronger when they have done their homework ahead of time.

While there are no rules on how contingencies must be written, both the buyer and the seller must be happy with the nature of the contingency and with the language as it appears on the contract. There is no limit to the type or number of contingencies. Whether you're buying or selling or both, you'll probably hear about contingencies and have them added to your contract. Contingencies are an everyday occurrence in the buying and selling of real estate and serve to bring the best of the transaction to everyone involved.

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Nancy Hankin

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Nancy Hankin - Palm Springs Realtor
Palm Springs CA
Direct (760) 861-5118


Old Fashioned Service Using New Fashioned Technology

I moved to beautiful Palm Springs, California to the desert, known as the Coachella Valley, from Milwaukee, WI in 1992. I wanted to be surrounded by sunshine, wonderful year-round weather and expansive mountain views. And that's exactly what I got! Now I specialize in helping others relocate and find their own special Home in Palm Springs, a true Paradise.

Most folks think of this area as Palm Springs, however, the Valley actually consists of (9) cities, each with their own personality: Palm Springs, Palm Desert, Cathedral City, Rancho Mirage, Indian Wells, La Quinta, Indio, Desert Hot Springs and Coachella.

I've been in Real Estate Sales, Marketing, Public Relations and Administrative work my entire career, which began in 1965. Being a Realtor is more than a business for me, it's a true passion and my client's interests are my main concern. I'm detail oriented, organized and I have a vast knowledge of the desert and the properties within the Valley. Unlike many Realtors who only specialize in one or two areas in Coachella Valley, I've SOLD Real Estate Properties in all of the communities of Coachella Valley.

I am more than just a Realtor. I have also been named one of less than 50,000 Realtors nationwide who is a Certified Residential Specialist (CRS) and  one of less than 15,000 Realtors nationwide who is a Senior Real Estate Specialist (SRES).  I am also a Real Estate Broker and e-Pro Certified, which means that I have an excellent understanding of technology as it applies to real estate on the Internet.

Due to my extraordinary production with RE/MAX over the years, I have achieved many top honors. I am a member of the Prestigious 100% Club, the Platinum Club and a Hall of Fame Member. Only 10% of the Realtors with RE/MAX in the California/Hawaii Region have earned this Platinum Club recognition.

Many of my clients are now friends, and they have referred both their family and friends to me. They know I'll take very good care of them from the beginning of our relationship, to after it's closed, and beyond that! I don't go away. I'm always available and eager to help in any way I can - before, during and after the sale! And to all those who continue to Refer Clients to me, a great deal of my work is from folks just like you, and it's greatly appreciated.

Education:

  • Majored in Journalism at the University of Wisconsin-Milwaukee with an emphasis on Sales, Public Relations and Marketing
  • Completed Courses in Real Estate Principles, Property Management, Office Administration, Agency and Ethics, Fair Housing, Trust Accounts, Real Estate Practice, Basic Appraisals and Real Estate Appraisals, Real Estate Finance and Real Estate Economics.
  • Completed courses in Sales, Sales Management and Board Development; Organizational Strategic Planning, Management Training and Fund Raising


Interests:
My children, grandchildren, golfing, reading, writing, bridge, socializing....and trying to make a more positive difference in the world we live in.

Specializing In:
California Vacation Homes, Relocation, Retirement Homes & Communities, New Home Sales, Golf Course Communities, Single Family Homes, Condominiums, Estates, Ranches, Land Sales.

Designations

  • CRS
  • e-PRO®
  • REALTOR®
  • SRES

Nancy Hankin

(760) 861-5118

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