Buyers, we know it’s hard out there for you right now. In our current seller’s market, the national inventory of active listings is down 43.1% year over year, according to the Realtor.com June 2021 Housing Market Trends Report. And a scarcer selection means people are paying more, too, with listings up 12.7% in price.
All of this demand means buyers are going to ever-greater lengths to make their offer stand out. They’re making sky-high offers and writing heartfelt letters to sellers about why they should get the house. But some buyers in especially tight markets are taking even riskier measures to beat out competitors: They’re removing contingencies.
Contingencies, in the world of real estate, are essentially conditions that must be met to finalize the sale of a home. The provisions of a contingency contract are there to protect buyers and sellers. A contingency offers an escape hatch if problems arise with the home or the homebuying process.
While it’s tempting for buyers to waive contingencies to make an offer more compelling, it can leave them unprotected from unexpected fees, health-threatening situations, and—worst-case scenario—a bad investment. To help you navigate the world of homebuying contingencies, we reached out to real estate experts to find out which ones should never be waived.