How does "no contingencies" actually work

[Anonymous]

Anonymous wrote:Never EVER waive the inspection contingency!!!!

What market are you in?? Everyone waives inspection here or you don’t get the house.

[Anonymous]

Related….why would an offer with no contingencies take longer than 30 days to close. Happening in our neighborhood.

[Anonymous]

Anonymous wrote:Related….why would an offer with no contingencies take longer than 30 days to close. Happening in our neighborhood.

The buyer has a slow lender or a party needs more time. No contingency doesn't mean no lender.

[Anonymous]

Anonymous wrote:Related….why would an offer with no contingencies take longer than 30 days to close. Happening in our neighborhood.

We had no contingencies with a 45 day close. You pick the closing time frame as part of your offer. 30 days is more attractive, but you could do no contingencies with a longer close period.

[Anonymous]

Anonymous wrote:We are looking to move school districts. We are downsizing to get into our desired, more expensive, district. But how can we have no contingencies in our offer if we need to sell our house? Does this mean everyone that's buying is selling their current place first? How does that work?

We had a month to month rental lease. Our neighbors had enough money for the downpayment that they could do the offer and then sell their condo afterwards.

[Anonymous]

Anonymous wrote:Never EVER waive the inspection contingency!!!!

Pfft, inspections are useless. It's not like you can hold the inspector liable if something crops up after the inspection.

[Anonymous]

You need to come up with the cash for a down payment without selling your current home. Try to have your current home listed within a week after closing on the new one to minimize the time you'll be paying two mortgages. Your realtor should be able to front all of the costs of selling (maintenance, painting, staging, etc.) and deduct it from the sale price, to reduce your expenses when you're cash strapped.

The alternative is selling first, possibly with a longer closing period or a rent back, and hoping to buy, but you risk ending up with nothing (and then inflation eroding your purchasing power).

[Anonymous]

Anonymous wrote:They are paying cash…
Either cash in hand
Or loan against assets which provides them essentially cash
Or they are doing a very expensive bridge loan
OR they have sold their house and rent it back for x months until a new house is found.

Unless you are number 1 or 2 above you will be putting yourself in a stressful situation.

We were #2. We qualified for the second mortgage and borrowed the down payment via a line of credit against against a brokerage account. The interest rate was very low, since it was guaranteed by liquid assets. However, it kept us from having to take a tax hit on selling the assets. We paid it back when our house sold.

In hindsight, selling first would have been fine. We were moving out of town & our house sold faster than we wanted via word of mouth and we had to find a place to live to finish out the school year. We went ahead and moved our furniture to the new house & rented a furnished apartment, which was a nice change of pace. We got to enjoy our last months in town without the burden of house & yard maintenance, etc. The kids were talking the other day about how much fun living in the apartment was. Of course, now they freak out if we talk about downsizing our current house, so…

[Anonymous]

Anonymous wrote:We are looking to move school districts. We are downsizing to get into our desired, more expensive, district. But how can we have no contingencies in our offer if we need to sell our house? Does this mean everyone that's buying is selling their current place first? How does that work?

We qualified to carry both mortgages. Put our old house on the market after we moved into the new house.

[Anonymous]

Anonymous wrote:Related….why would an offer with no contingencies take longer than 30 days to close. Happening in our neighborhood.

In our case it was because the seller wanted a long close.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Never EVER waive the inspection contingency!!!!

Pfft, inspections are useless. It's not like you can hold the inspector liable if something crops up after the inspection.

Agree. If I ever buy a house again I’ll inspect the important things myself because they are mostly visible: windows, water damage, heat/ac working, plumbing. I may get a roofer to look at the roof and my (trusted) HVAC person to look at that.

[Anonymous]

Anonymous wrote:Related….why would an offer with no contingencies take longer than 30 days to close. Happening in our neighborhood.

I've seen a few of these too. One ended up closing on day 39, the other is currently around there too but hasn't closed. Secretly, I'm hoping the financing falls through and it goes back on the market so we can make an offer on it, but I'm not sure that's a thing anymore these days with everyone waiving all the contingencies.