Home Buying in Milpitas>Question Details

Pt, Home Buyer in Santa Clara, CA

We just got a counter offer from the sellers (multiple counter offers situation), asking to pay 788k and remove all contingencies. The listed price is

Asked by Pt, Santa Clara, CA Thu Sep 13, 2012

749k and we offered 783k with short closing and loan approval time. Its a beautiful property in a premium location in 95035 zip code, 4b/3ba, 2183sq ft, 5800sq ft lot, nicely updated kitchen, bathrooms, new laminate floor, dp windows, Sep fam room and lots of light. We love the home, but wonder if its OK to waive all contingencies. The seller's inspection report is recent and doesn't point anything major

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I would never have a buyer waive the loan or appraisal contingencies. These are things that are outside the buyer's or Realto0r's control and you certainly do not want to be responsible if these items don't work out.

I don't care how lovely a home is...there are always others.
1 vote Thank Flag Link Fri Sep 14, 2012
For questions like this, you'll have to ask your Realtor. While I know the neighborhood and the type of home you're looking at, it's not possible to know whether you should remove all contingencies. I would need to review the inspection report and discuss your personal situation to provide an answer.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Thu Sep 13, 2012
Hi All, thanks for responding! We bought another house, waiving all contingencies didnt seem wise and we werent comfortable.

Thanks again!
0 votes Thank Flag Link Fri Feb 8, 2013
Hi Pt

What is your agent saying.

I wrote 2 offers this week, with no contingencies and got them accepted.

Its okay to pass too, and before you make a bid on another property to do inspections be sure
on the offer you are making.

Right, you can always do an inspection before making an offer !!

Best regards
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Thu Feb 7, 2013
Hi Pt,

Hope you got the home by now. If you didn't, you're probably running into some of the same problems that many buyers are facing today...how to "strengthen" your offer while still retaining some control over the purchase.

To be frank, most buyers are removing contingencies today. This is only advisable if you, your Realtor, and your loan broker/agent are in agreement that the contingencies can be removed. Otherwise, contingencies are there to protect you, as the consumer, from unforeseen or unexpected problems associated with, frankly, one of the most expensive purchases of your life.

Be careful and work with a great team of real estate professionals who can help you make a unique decision for each home.

Again, hopefully, you were able to purchase the home of your dreams in Morgan Hill and are not currently in the market still looking for a home!!

Good luck!
Grace Morioka
Allison James Estates & Homes
0 votes Thank Flag Link Tue Jan 29, 2013
I would never advice my client to waive all contingencies, but sadly enough many buyers are doing just that. I write offers for my clients with the built in contingencies and then they take another offer where there are no appraisal, loan or inspection contingencies. If a buyer is willing to do that, obviously the seller will be happy to take thet offer since they have nothing to lose.

You should read the market conditions advisory since it explains what the contingencies are and what can happen if you decide to waive them. It should really be your decision where the agent is not blamed later if you lose your deposit because of being unable to go through with the sale for any of the issues that could have been part of the contingencies.

I know inventory is low and the demand is high, but this is your deposit so if you are willing to lose it, then the decision is yours. It also depends on how much the deposit is. In that price range, I am sure it is a substantial amount of maybe 3%, correct. To me that is huge and I would not risk it.

Meena Gujral
Help-U-Sell Achievers Realty
http://www.helpusellachievers.com
510-279-9580
0 votes Thank Flag Link Tue Jan 29, 2013
The best thing to do is discuss this with your agent.
0 votes Thank Flag Link Sat Sep 15, 2012
Yup, we countered but didn't waive contingencies! Thanks all again.
0 votes Thank Flag Link Fri Sep 14, 2012
$5,000 is very little; I note that you do not adress that.
Giving up your Contingencies would be dumb.
But your Realtor probably already told you that.
You are working with a Realtor, aren't you?
Do as you will.
0 votes Thank Flag Link Fri Sep 14, 2012
You have to decide what you can live with. I used an agent once on selling my home and I had a contingency on my new. Contingency was on selling my existing home first. Builder of new home and his agent wanted me to lift contingency before selling my home first.

Couldn't believe it when my own agent pressured me to do the same thing. I put my foot down and said absolutely not. Was not going to be stuck with two homes. So much for an agent fighting for me.
0 votes Thank Flag Link Fri Sep 14, 2012
I once had a good inspection report that was provided by the seller. When my inspector came in, he found structural damage. Ask the agent who wrote your offer what is your best course of action.
0 votes Thank Flag Link Fri Sep 14, 2012
You have an agent with an agency with them. Please allow him/her to do the job you hired them to do.

ALL contingencies mean that if the property doesn't appraise you will have to make up the difference.
If you can't get the loan then can you pay cash?
Failure to complete your contract when you waive all contingencies you risk your earnest money.

This is what your agent will discuss with you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Fri Sep 14, 2012
You will be removing every right to cancel including appraisal. Make sure your agent as gone over the comps with you because if the house does not appraise you will have to pay the difference and move forward or loose your deposit.
0 votes Thank Flag Link Fri Sep 14, 2012
thanks everyone, for your responses!
0 votes Thank Flag Link Fri Sep 14, 2012
No, it's not OK to remove all contingencies.
Well, maybe it is.
I would not have any problems removing the property condition contingency if the inspection and the termite reports are from reputable inspectors and there is no major issues found.
The financial contingency, on another hand, is our of your control - it is up to the bank to decide if they are going to finance your purchase. If your lender is willing to go ahead without a loan contingency you may take your chances. But it is your earnest money deposit on the line. There is a number of possible scenarios there and you have to assess the risk with your agent and with your lender.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Thu Sep 13, 2012
Hi Pt,

Brad and Tina are spot on this time...your question needs to be answered by your agent, and not by our forum members who are not aware of the intricacies of your contract, the disclosures o this home. Trust your agent and make the bet decision for you.

I, for one,would never presume to advise you on a contract without knowing all the details.

Good luck,
Grace Morioka
0 votes Thank Flag Link Thu Sep 13, 2012
Hi Pt...I don't think any agent in this forum will feel comfortable answering your question. It all depends on the reports and inspections provided by the seller as well as the condition of the home...but making a non-contingent offer in itself always carries additional risks.

Your best solution is to consult the real estate agent you hired to represent you in the purchase as they are going to be the only qualified agent to provide the feedback that your asking for. If your agent can't assist you then you may have to turn to a real estate attorney, or the agent's broker for help.

By the way, what is the reason you're asking this forum? Is there any reason you haven't asked your agent these questions? Have they not provided adequate feedback?

Just curious...
0 votes Thank Flag Link Thu Sep 13, 2012
ha ha...the reason i ask here is that we'll be discussing this with our agent tomo morning first thing, but want to be have inputs to have an idea of where it could go..thanks!
Flag Fri Sep 14, 2012
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