What Contingencies to Expect When Buying in Rochester

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Today, we're going to talk all about contingencies. A contingency is in place to protect the buyer from being obligated to buy a property.

First, I'll go over some common contingencies. One of these is a financing contingency. Many buyers get pre-approved, but there are still some things that have to happen before they are 100% approved for financing, like an appraisal. If it's a cash offer, there are no financing contingencies.

Another common contingency is the inspection contingency. This allows the buyer to do an inspection of the home, and if they want to back out of the home purchase, they can do so without giving the seller a reason. Of course, after the inspection you can also renegotiate with the seller.

The third most common contingency is the disclosure contingency. In the state of Minnesota, every seller is required to include a seller's disclosure statement that lists everything about the home. If the buyer has not received that disclosure, they are not obligated to purchase the home.

While those are the more common contingencies, there are a few others you may encounter. One contingency you don't see much anymore is the contingency upon a home sale. If you're a buyer, and you have a home you need to sell before you can close upon another home, you make your offer contingent on your home sale.

Another uncommon contingency is for the home seller that makes selling their home contingent on finding another property. They list their home contingent upon finding another home. If they can't find another home, they are not obligated to sell their property.

If you have any other questions on contingencies, give us a call or send us an email. We look forward to hearing from you!