Learn how to let go of the fear of removing real estate contingencies when buying a home in Southern California. We created a step by step list to help you.
We are excited that you found the Southern California house you like and your offer was accepted!! Congratulations are in order. Let’s see what’s involved for you by covering your real estate contingencies of this purchase.
What I want to talk about today is the Buyer’s timeline of “getting things done”. From the date that your offer was accepted in writing, by the seller, a timeline of 17 days starts for you, the buyer. This is called the Contingency Period.
During these 17 days you have to do your due diligence.
Basically, find out everything there is to know about the house.
- Read the disclosures about the home that the Seller will give you,
- The Home Inspection (find out what is Good, Bad, and Ugly about the house), and ask for repairs from the report (I will provide you a list of home inspection companies)
- Have your lender order the appraiser,
- Have the appraisal done
- Receive final written loan approval
Removing The Real Estate Contingencies
Once all of the above is squared away, so to say, the Seller will most likely ask you to remove your contingencies. Day 17 has arrived! By removing your contingencies you indicate to the Seller that you have done everything necessary to know that this is the right home for you.
Now that you removed your contingencies, you can still back out of the transaction, in fact you can back out of the transaction up till the last day of the escrow period.
But why would you? You’ve done your due diligence!
To back out after you removed contingencies means that your initial deposit will most likely go to the Seller. They took the home off the market, stopped advertising it to the public and have to start the selling process all over. You backing out at this point costs them money.
My clients know that I have their best interest in mind and for that reason, I don’t want to take the full 17 days to find out what the house is about. The sooner you know that this is the right home for you, the better.