The Lake Havasu real estate market keeps getting hotter and hotter. Prices continue to rise due to a lack of inventory and high Buyer interest. So do not be surprised if you find yourself competing against other buyers for a property. You might want to add contingencies to your offer. These are stipulations that must be met before a sale can be completed. If not, then the buyer can cancel the deal and walk away with their earnest money intact. However, you need to keep them to a minimum. The more complicated you make a deal, the less likely a seller is to accept it. Here are a few of the most Common Contingencies buyers include when submitting an offer.

Common Contingencies When Buying a Home

Home Sale Contingency

One of the most common contingencies buyers request is a home sale contingency. This is for buyers who must sell their current home in order to purchase another one. Usually, you need to stipulate a specific time frame to complete the sale of your current home (30 to 60 days, for example). In a market like ours, though, sellers may consider this a detriment and pass on your offer.

Financing Contingency

Buyers may also choose to make the sale contingent on financing. However, I highly recommend that you receive pre-approval for a loan before you even start looking at houses. Our Havasu market is so crazy right now that we see many homes go under contract on the very day they hit the market. You need to be ready to strike as soon as you find a home you like. Otherwise, you run a good chance of losing out to another buyer.

Appraisal Contingency

Another common contingency buyers include is an appraisal contingency. Your lender requires an appraisal of the property in question before they will approve a loan. If the appraised value comes in under the sale price, they will not approve it. Then, you must go back and either negotiate a lower price or come up with the difference between the sale price and appraised value in cash yourself.

Inspection Contingency

Smart Havasu home buyers hire a home inspector to walk through the property during their escrow period. Even newly constructed homes can come with problems. What they find may have a significant impact on whether or not you want to continue with the sale. Therefore, some buyers include an inspection contingency as part of the terms of the sale. The inspector’s findings may also give you leverage at the negotiations table.

Before you decide which of these common contingencies to include (if any) with your offer, you should confer with your Lake Havasu REALTOR®. They know the market and can help you decide whether or not these contingencies will help or hurt you. They can guide you in the right direction.

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