Hard to believe, I know, but several times in the past few weeks I’ve represented buyers who have been asked to waive the “usual” contingencies, or have lost out on a home to a bidder who was willing to do so.
As we tick down these last few weeks of the first time and repeat home buyer credits, sellers are very nervous about pulling properties off the market and then having to re-list in a post-tax-credit world after a “bad” home inspection or “bad” appraisal.
On the one hand, I can’t blame them, and I would try to negotiate that for my sellers as well, but on the other, inspections and appraisals are part of the risk the parties take–after all, the would-be buyer is risking their tax credit as well if the deal falls apart! For first timers, the process is nerve-wracking enough; add to it a pending deadline, and throw in a waiver of standard buyer protections and it’s a recipe for a breakdown.
A good agent, though, can sometimes protect a buyer (or at least mitigate the risk) by using other tools in the contract, even if you find yourself in the difficult position of having to waive a contingency to win a property you love.
I hate to see this wave of “waives” …it’s very bad news for buyers, and I hope that this particular trend expires along with the tax credit in ten days…nine…eight…
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