May 24, 2022 • Buying
By Kate Barker
When buying a home, it’s common to buy with contingencies. This means certain conditions need to be fulfilled before the sale is finalized. There is usually a timeline to make sure they’re completed as quickly as possible. So what might hold up the sale of a home? Here are 3 common contingencies.
While buyers shop with a pre-approval in place, once they actually make an offer, they need to secure a mortgage to pay for the property. Mortgage lenders approve both the buyer and the property. If there are any known issues, they may not approve a mortgage. This is one of the most common contingencies in place when buyers make an offer.
It’s common for mortgage lenders to request an appraisal, to make sure the property is worth the asking price. A professional appraiser will look at the home and compare it to other homes in the area. Is the sale price in the correct range of other homes sold in the neighbourhood? They may also visit the home to take measurements and assess the condition of the home to determine its value.
This involves the buyer hiring a home inspector to come to the property and check for any potential problems. While there’s no such thing as a perfect inspection, this process is looking for things that weren’t already disclosed, or that are beyond the buyer’s budget to repair. This can be stressful for both buyer and seller, since an inspector may find issues the seller didn’t even know were present. The inspector is looking for anything that isn’t up to code, including the foundation, electrical, plumbing, HVAC, and structural damage.