You may have heard Carine and I say, “It is not always the price but the TERMS of an offer that
can be the deciding factor”. So what are these “terms”? Think of terms as your tools & we can
mix and match the tools depending on the property. Before we do so, I wanted to make sure
you have a good understanding of what each of these tools do.
🔨Waiving Inspection Contingency
This does not always mean that you waive your right to complete an inspection. On our team,
we always recommend to complete your inspections because this is the time in which you will learn all about
the condition of the property. What this DOES mean is that you are not going to renegotiate
the price after your inspection. However, if a material defect comes up in the inspection such
as mold, radon, asbestos, septic failure, faulty electrical etc… these findings can be discussed
amongst agents/attorneys to find a remedy.
⚒ Waiving Appraisal Contingency
You can speak with your mortgage broker further on this and the possibilities of adjusting your
LTV ratio if an appraisal is to come in short. However, waiving this contingency means that if
the bank appraisal comes in at $950,000 but you have a contract price of $1,000,000 then you
agree to cover the gap. Waiving your appraisal is becoming increasingly common- our clients
have needed to waive this on the majority of our deals.
✏ Waiving Mortgage Commitment Contingency
Waiving your mortgage contingency means that you are choosing to not include the protection
in your contract agreement. If you are not able to obtain funding then you risk your 10% down
payment. It is possible to have a mortgage contingency in today's market, but it is becoming
increasingly difficult with the number of strong offers that are out there. Your mortgage broker
will be able to advise his/her certainty in obtaining your funding.
⚙ Escalation Clause
This is something that I can add into our offer if it does go to highest and best offers. It
automatically increases your offer by “x” amount above other offers UNTIL a maximum price
that you can set. Escalation clauses are what I call, the highest and best after the highest and
best. It is a great way to make sure that your offer still has a chance even after the final call for
offers. Note: Not all sellers will allow for escalation clauses right now.
🔧 Down Payment
The more you put down the stronger you will be perceived by the sellers, also the more
flexibility you will have, before pulling out more cash, if an appraisal does fall short.
If you would like to discuss any of these tools further, please do not hesitate to give us a call!
We are here for you in this ever changing market and have been able to guide many buyers to
the finish line. Let’s get you there too 🏁
The Carine and Cate Team Contact Information:
