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Should You Waive Contingencies to Win a Bidding War?

Waiving homebuying contingencies can help you get noticed if you're up against a bidding war. But is it the smartest move for your investment business?

[Updated: Jun 10, 2021 ] Jun 12, 2020 by Aly J. Yale

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Contingency Type What It Does
Financing contingency With the financing contingency, also called a mortgage contingency, you're allowed to back out of your contract if you're unable to secure a mortgage loan for the property.
Inspection contingency This gives you a certain number of days to have a home inspection conducted on the property. If you're unhappy with the results or unable to negotiate repairs or repair credits for what the inspector finds, you can back out of the deal.
Appraisal contingency The appraisal contingency allows you to exit the transaction if the home's appraised value comes in less than what you offered for it.
Title contingency This one ensures you get a clean title to the property. It lets you leave the deal if any liens or disputes of the property's ownership arise.
Home sale contingency The home sale contingency lets existing homeowners leave a transaction if they're unable to sell their current property by a certain date.

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