Foreclosure in 48161>Question Details

Chad, Home Buyer in Monroe County, MI

what is normal in michigan,southeast to ask for as far as contingencies,most common?

Asked by Chad, Monroe County, MI Sun May 18, 2008

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Chad, It's been my experience, that most banks will not look at bids with contingencies, especially when the home has only been on the market a short time.

Perhaps some other members have different experiences.
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1 vote Thank Flag Link Sun May 18, 2008
I had placed a low ball bid on a short sale. It was about 30% lower than listed. I never even heard a word. I started getting a little worried, assuming that it needed to be sold or it would go into forclosure, and I didn't want to go through that. I ended up giving them 10 grand less than asking, with a 3% closing cost kickback at signing. It was responded to the next day. I want you to make sure you have an active realtor who is very persistent w/ the bank to push it. That is the key to any bid,. From this exp., solely, I feel low balls usually don't get accepted or even considered. People who are selling currently are forced to put it up realistically, or else they would wait.
1 vote Thank Flag Link Sun May 18, 2008
adding to the list if it applies:
Contingencies regarding examination of leases and verification of deposits.
This goes without mentioning assuring the rights of a tenant and monies held on their behalf.

It is further important to establish the ability to ascertain insurance on the property. The concern for certain properties not qualifying. When applying for a mortgage the lender would base their approval on this condition.
However in a cash transaction this may have some serious consequences.

Title is mentioned in most contracts and so are deeds . Make sure that the it is marketable.

The list goes on and while some not readily recognized and used, each case and purchase requires further legal advice.
0 votes Thank Flag Link Tue Aug 10, 2010
My concern in this market is to establishing value. Even as a seasoned broker identifying true market value is a challenge . Rather being sorry adding a contingency clause "property offered at $$$$$ must meet appraised value $$$ or this contract is null and void.( *regardless if this is a cash transaction)

The next concern is outstanding violations which are not always reported on inspections and omitted in an as is sale. Checking with the city (must for all buyers today) violation on outstanding permits or incompletion of work done can be costly when cities and towns are looking for revenues. You could end up in a law suit or as a target for unpaid bills.
A contingency that provides due diligence to establish findings of any and all information pertaining to the property, which may address adverse action and have negative effect on the property, with a recourse of terminating contract if conditions are not remedied within ... days.
Chad I commend you on your question it shows that you are indeed a cautious buyer. While we as realtors able to give you valuable support I would highly recommend to review all contracts with an attorney.
Years ago attorneys were known do blow deals because they were often too protective. In this market you cannot be overprotected and their knowledge will be most valuable.

Good Luck
0 votes Thank Flag Link Tue Aug 10, 2010
I would add appraisal contingency to inspection and financing. Not common but banks will accept it and it protects the buyer.
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0 votes Thank Flag Link Mon Oct 20, 2008
Maureen Fran…, Real Estate Pro in Birmingham, MI
Chad: In my experience the only contingencies are home inspection and financing. None of the banks I work with will consider an offer with the contingency of the sale of a home. In fact if you are looking at Relocation company listings they do not enter into contracts with the contingency of the sale of a home.
If you are interested in checking out more foreclosed properties there is a great web-site check it out. Fran
0 votes Thank Flag Link Fri Oct 17, 2008
From my experience banks won't even consider any contingencies other than home inspection and financing (must still be pre-approved). Most of the time, the listing agent won't even submit if you try to put in a "contingent on the sale of your home" or things that will hold up a sale. Good luck!
0 votes Thank Flag Link Mon May 19, 2008
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