Anonymous
06/08/2023 21:07
Subject: Are contingencies being accepted again?
Anonymous wrote:To waive the financing contingency essentially means that you're paying all cash?
No it means you have pre-approval and know you'll get your loan. Realistically not sure what would happen if you waived this and didn't get it, but it is certainly not all cash.
Anonymous
06/08/2023 21:03
Subject: Re:Are contingencies being accepted again?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:Op - our contingency would be on the sale of our existing home. Assuming that would make our offer not as attractive.
How do you pay if you don’t use the sale of an existing home?
Oh hell no. This is the ONE contingency that basically no longer exists. You cannot do that in this market. You need to sell first or get yourself a bridge loan.
We were able to qualify to carry two mortgages (which is insane, there is no way we could actually carry both mortgages for longer than a month) so we bought before selling.
This. So take that into account on budgeting and planning. With a bridge, you still have to qualify for both, and carying an existing mortgage balance, a bridge, and a new mortage all at the same time can limit your budget due to utilization. So if it is tight, you might have to sell first.
You can potentially negotiate a rentback as the seller (where the house closes early, so you get the money to use to buy a new home, but don't move for another three months or so). But you are putting a time limit on when you absolutely must be out of the house.
Rent backs are limited by lenders to 60 days. So unless your house is purchased by an all-cash buyer, you can’t get a rent-back for more than 2 months.
That’s by practice not by law, so it’s negotiable if you get creative. And its I believe related to standard paperwork for conforming loans and requirements that it be owner occupied. If the person buying the house isn’t looking to live in it, don’t think it applies.
Anonymous
06/08/2023 20:55
Subject: Are contingencies being accepted again?
Anonymous wrote:Are people waiving the HOA contingency? The HOA was the reason we waived the inspection contingency - we knew we could do an inspection anyway and just use the HOA to walk away if we needed to. It's why we didn't accept the low dollar, no contingency on our own home.
Inspection appointments have to be approved by seller's realtor (not that they are picking inspector, they just have to allow house to be entered into for that purpose) you can't sneak an inspector in
Anonymous
06/08/2023 20:22
Subject: Are contingencies being accepted again?
Anonymous wrote:Are people waiving the HOA contingency? The HOA was the reason we waived the inspection contingency - we knew we could do an inspection anyway and just use the HOA to walk away if we needed to. It's why we didn't accept the low dollar, no contingency on our own home.
I think legally you can’t waive this.
Anonymous
06/08/2023 20:20
Subject: Are contingencies being accepted again?
From what I can tell, the most attractive properties are going within 0-3 days for over ask and all contingencies waived. Some properties that are either overpriced or have some undesirable feature (ex backing to a major road) are sitting and might accept a contingency in order to get under contract.
Anonymous
06/08/2023 20:17
Subject: Are contingencies being accepted again?
Anonymous wrote:Are people waiving the HOA contingency? The HOA was the reason we waived the inspection contingency - we knew we could do an inspection anyway and just use the HOA to walk away if we needed to. It's why we didn't accept the low dollar, no contingency on our own home.
How does this work? If you waived inspection contingency, the seller doesn't have to let you in for an inspection, do they?
Anonymous
06/08/2023 20:16
Subject: Re:Are contingencies being accepted again?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Op - our contingency would be on the sale of our existing home. Assuming that would make our offer not as attractive.
How do you pay if you don’t use the sale of an existing home?
Oh hell no. This is the ONE contingency that basically no longer exists. You cannot do that in this market. You need to sell first or get yourself a bridge loan.
We were able to qualify to carry two mortgages (which is insane, there is no way we could actually carry both mortgages for longer than a month) so we bought before selling.
This. So take that into account on budgeting and planning. With a bridge, you still have to qualify for both, and carying an existing mortgage balance, a bridge, and a new mortage all at the same time can limit your budget due to utilization. So if it is tight, you might have to sell first.
You can potentially negotiate a rentback as the seller (where the house closes early, so you get the money to use to buy a new home, but don't move for another three months or so). But you are putting a time limit on when you absolutely must be out of the house.
Rent backs are limited by lenders to 60 days. So unless your house is purchased by an all-cash buyer, you can’t get a rent-back for more than 2 months.
Anonymous
06/08/2023 20:12
Subject: Are contingencies being accepted again?
We just won over an all cash offer that had an inspection contingency. Our offer was about 50K under asking with no contingencies and a healthy DP. I don’t know what the cash offer was but assume it was very very low for ours to have been more attractive. Very in-demand location in MoCo.
Anonymous
06/08/2023 19:41
Subject: Are contingencies being accepted again?
I guess it depends on how long the house has been on the market.
For example, I bet these folks would accept a contingent offer:
https://www.redfin.com/MD/Silver-Spring/11538-Highview-Ave-20902/home/11071982
https://www.redfin.com/MD/Adelphi/2702-Muskogee-St-20783/home/11093930
https://www.redfin.com/VA/Brambleton/22891-Courtland-Park-Dr-20148/home/12070009
For example, I bet these folks would accept a contingent offer:
https://www.redfin.com/MD/Silver-Spring/11538-Highview-Ave-20902/home/11071982
https://www.redfin.com/MD/Adelphi/2702-Muskogee-St-20783/home/11093930
https://www.redfin.com/VA/Brambleton/22891-Courtland-Park-Dr-20148/home/12070009
Anonymous
06/08/2023 19:40
Subject: Re:Are contingencies being accepted again?
Anonymous wrote:Anonymous wrote:Op - our contingency would be on the sale of our existing home. Assuming that would make our offer not as attractive.
How do you pay if you don’t use the sale of an existing home?
Oh hell no. This is the ONE contingency that basically no longer exists. You cannot do that in this market. You need to sell first or get yourself a bridge loan.
We were able to qualify to carry two mortgages (which is insane, there is no way we could actually carry both mortgages for longer than a month) so we bought before selling.
This. So take that into account on budgeting and planning. With a bridge, you still have to qualify for both, and carying an existing mortgage balance, a bridge, and a new mortage all at the same time can limit your budget due to utilization. So if it is tight, you might have to sell first.
You can potentially negotiate a rentback as the seller (where the house closes early, so you get the money to use to buy a new home, but don't move for another three months or so). But you are putting a time limit on when you absolutely must be out of the house.
Anonymous
06/08/2023 19:34
Subject: Are contingencies being accepted again?
Are people waiving the HOA contingency? The HOA was the reason we waived the inspection contingency - we knew we could do an inspection anyway and just use the HOA to walk away if we needed to. It's why we didn't accept the low dollar, no contingency on our own home.
Anonymous
06/08/2023 19:32
Subject: Re:Are contingencies being accepted again?
Anonymous wrote:Op - our contingency would be on the sale of our existing home. Assuming that would make our offer not as attractive.
How do you pay if you don’t use the sale of an existing home?
Oh hell no. This is the ONE contingency that basically no longer exists. You cannot do that in this market. You need to sell first or get yourself a bridge loan.
We were able to qualify to carry two mortgages (which is insane, there is no way we could actually carry both mortgages for longer than a month) so we bought before selling.
Anonymous
06/08/2023 19:30
Subject: Are contingencies being accepted again?
June is notoriously a slow month, OP, that's why things are sitting for longer than three days. Our agent advised us to wait until July if we couldn't list by May.
Anyway, yes, sellers are accepting contingencies. They have been this whole time!! We bought our house this spring with a void only inspection contingency, and the financing and appraisal contingencies in place.
Anyway, yes, sellers are accepting contingencies. They have been this whole time!! We bought our house this spring with a void only inspection contingency, and the financing and appraisal contingencies in place.
Anonymous
06/08/2023 19:21
Subject: Re:Are contingencies being accepted again?
Op - our contingency would be on the sale of our existing home. Assuming that would make our offer not as attractive.
How do you pay if you don’t use the sale of an existing home?
How do you pay if you don’t use the sale of an existing home?
Anonymous
06/08/2023 19:17
Subject: Are contingencies being accepted again?
Anonymous wrote:To waive the financing contingency essentially means that you're paying all cash?
No, not at all. It just means that you are very confident that there is no chance your financing will fall through. We waived financing contingency and most definitely could not have paid cash, but we had very stable jobs and very healthy bank accounts.