Contingency

[Anonymous]

I’ve been making offers on SFH in NOVA, usually 100k over list. We always seem to end up in a discussion about waiving all contingency because the seller doesn’t want any offers with them. We include inspection, appraisal, and financing in our offers. Is this what it takes to buy a house now or do I keep making offers and hope for better luck?

[Anonymous]

I chose the offer that was slightly lower and no contingencies. Esp if you are offering 100k over ask, appraisal would be a big concern.

[Anonymous]

If you’re not prepared to waive all three contingencies you probably need to be at least $20k over the other offers and commit to inspection within 24 hours. If you don’t waive financing then you should appear financially strong (eg by putting 30% down) and have a reputable local lender proactively reach out and vouch for you. I don’t think keeping the appraisal contingency would fly with any seller facing multiple offers at $100k over asking, which is typical these days.

And don’t include weak escalators like $2k increments. That just means you could end up only $2k higher than an offer waiving all three contingencies, and they’ll be selected over you.

[Anonymous]

Do a pre-inspection
You can test for radon after you buy. Remediation is about $950
If you can't afford to bridge the gap between the appraisal and the price you pay, you should not be making the offer.
If you can't finance the house at the highest price you are willing to pay, you should not be making the offer

[Anonymous]

Anonymous wrote:If you’re not prepared to waive all three contingencies you probably need to be at least $20k over the other offers and commit to inspection within 24 hours. If you don’t waive financing then you should appear financially strong (eg by putting 30% down) and have a reputable local lender proactively reach out and vouch for you. I don’t think keeping the appraisal contingency would fly with any seller facing multiple offers at $100k over asking, which is typical these days.

And don’t include weak escalators like $2k increments. That just means you could end up only $2k higher than an offer waiving all three contingencies, and they’ll be selected over you.

Exactly this.

[Anonymous]

Do a pre-inspection to get comfortable with waiving inspection. Instead of offering $100K over with contingencies, offer $30-50K over with no contingencies, save the rest of your funds in case you need to make up an appraisal difference or make a major repair.

You want to communicate to the seller that you are locked in on the deal and will close. That's more valuable than price to many sellers.

[Anonymous]

Anonymous wrote:If you’re not prepared to waive all three contingencies you probably need to be at least $20k over the other offers and commit to inspection within 24 hours. If you don’t waive financing then you should appear financially strong (eg by putting 30% down) and have a reputable local lender proactively reach out and vouch for you. I don’t think keeping the appraisal contingency would fly with any seller facing multiple offers at $100k over asking, which is typical these days.

And don’t include weak escalators like $2k increments. That just means you could end up only $2k higher than an offer waiving all three contingencies, and they’ll be selected over you.

I’ve been offering best price right off the bat, don’t bother with escalators.
Where do I find a inspector that can show up really quick?

[Anonymous]

An appraisal contingency that high over asking is NOT going to win in a multiple bid situation. The seller doesn't want to negotiate if it doesn't appraise, and they know the other offers will be long gone to another home by the time the appraisal is done.

You gotta be willing to waive at least the appraisal contingency. Look at the comps and figure out how much cash you can reasonably pay over an appraisal, and guesstimate what your exposure is on the appraisal contingency - if you're putting down at least 20% you can even ask your lender if waiving the appraisal is an option.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you’re not prepared to waive all three contingencies you probably need to be at least $20k over the other offers and commit to inspection within 24 hours. If you don’t waive financing then you should appear financially strong (eg by putting 30% down) and have a reputable local lender proactively reach out and vouch for you. I don’t think keeping the appraisal contingency would fly with any seller facing multiple offers at $100k over asking, which is typical these days.

And don’t include weak escalators like $2k increments. That just means you could end up only $2k higher than an offer waiving all three contingencies, and they’ll be selected over you.

I’ve been offering best price right off the bat, don’t bother with escalators.
Where do I find a inspector that can show up really quick?

Your realtor should arrange that and if not then find a new realtor. I have never once reached out to an inspector directly; I just told my realtor I needed someone ASAP and she took care of it.