In a normal balanced real estate market, conditions are common place. A traditional offer would typically include conditions of financing and inspection for about a week. This allows the buyer to take their accepted offer into the bank for approval and have an inspection done by a professional. With these conditions, if any issues were to arise, the buyer would have the right to negotiate some sort of compromise or walk away from the deal at no cost.
The Risky Norm
Todays competitive market is very different. As buyers get anxious and desperate to buy a home they start to waive these conditions in their offer that were once there to protect them. This leaves the buyers vulnerable to financial risks and overlooked issues.
What Many Don’t Know
Many buyers don’t realize that just because they are pre-approved doesn’t mean they can just go buy anything within their budget. The bank must still approve the home that is being purchased as well. The bank wants to insure that you are not overpaying compared to their appraisal. If you pay more than the appraised value, you will be responsible to come up with the difference.
Our Concerns
There are still many of buyers out there removing all of their conditions, thinking this is the only way to have a chance. Many are still unaware of the financial risks they are putting on themselves.
The Solution
There are ways to still be competitive and remove these conditions while eliminating the risk and keeping yourself protected.
To learn more, give us a call and we can help guide you through the buying process safely
– Your Realtors For life
