Lee Morof's Real Estate Blog

Whether you’ve bought and sold a dozen homes or you’re a first-time home buyer, you probably know that after you purchase Bloomfield Hills real estate, there is usually no option to return or exchange it. Because of this finality, you need to be sure your contract spells out all the conditions you want met before the deal can close. In real estate contracts, these conditions are called contingencies.

Contingencies are the requirements that both the buyer and the seller must meet in order for the closing contract to be valid. If something does not meet specific criteria, the contract must be renegotiated or it becomes null. Below is a list of contract contingencies every buyer should include in their bid — so that you don’t end up with an unexpected fixer-upper on your hands!

• Home Inspection Contingency – This is a really important contingency because you want to make sure there are no problems with the Bloomfield Hills real estate. If any serious problems are discovered, such as wood-destroying pests, lead-based paint or a damaged roof, you can renegotiate your contract to account for the costs you’ll incur during repairs.
• Loan Contingency – This allows the buyer to shop around for a loan so that they can get financed under a particular interest rate and not get locked into high mortgage payments that they cannot afford. If a buyer can’t secure a loan that meets the contingency parameters, then the contract can be voided.
• Home Insurance Contingency – This means that you’re asking the seller to provide proof that the home is currently insured. This is needed because, in recent years, homeowners living in states with a history of household toxic mold, earthquakes, or hurricanes, have been surprised to receive a flat out “no” from the insurance carriers. You want to make certain that the home is insurable before you buy it. If there are serious issues with the home, insurance companies might reject it or charge astronomical rates.

If you would like to know more about contingencies or need help buying Bloomfield Hills real estate, please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
www.NorthWoodwardHomes.com