Buying a new home is a big deal, whether it’s a beachfront condo on Marco Island, a luxury estate on the edge of the island, or a Tigertail Beach home with a swimming pool—and it’s important that your contract reflects how important the transaction is.
That means your Marco Island REALTOR®® will build contingencies into your real estate purchase contract.
But what are they, and how do they benefit you?
What Are Contingencies in Real Estate?
A contingency is a condition that must be met for you to purchase a home. Your REALTOR® will put contingencies into your real estate purchase contract to help protect your best interests. Some of the most common contingencies involve appraisal, home inspections, and financing.
The Home Appraisal Contingency
Your lender will choose an appraiser once you’ve asked for financing on a particular property. The appraiser will determine the home’s fair market value.
If the appraisal is lower than the price the seller is asking, your lender may not want to fund the full amount.
In that case, you need a home appraisal contingency in your contract so you can walk away from the deal.
The Home Inspection Contingency
Your home inspection report will show you every issue the inspector discovered while checking out the home. If something is wrong, you have three choices: You can ask the seller to fix the problem, adjust your offer based on how much the repair or replacement will cost you, or back out of the deal.
The Financing Contingency
If you can’t secure financing for a home, you don’t want to be forced to buy it anyway—and that’s where a financing contingency comes in. This contingency will protect you and the seller from getting caught up in a bad deal.
Do You Need to Talk to a REALTOR®® About Buying a Home on Marco Island?
If you’re thinking about buying a home on Marco Island, we’d love to help you find one that’s just right for your needs.
Call us at 239.821.7926 or get in touch with us online to let us know what you’re looking for. We’ll start searching right away. In the meantime, please explore our:
- Marco Island homes for sale from $100k to $200k
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