We have officially entered the crazy season of real estate. Home prices are high, inventory low, buyers anxious and it seems innumerable… spells recipe for a gladiator scenario of only the strong survive!
To be competitive, buyers make concessions on things that I strongly advise against unless they are prepared to pay more for their home that it may be worth.
Buyers want homes so badly they are willing to waive mortgage contingencies, inspections, add escalating clauses (the seller can accept a higher offer at a later date even though they've already accepted your offer). All these sound great but when you do any of the above… you risk losing your deposit. That's a lot of money. I question agents who advise any of the above on homes that we foresee issues. The only time I would forego an inspection would be in new construction… other than that… you have no idea what is behind those walls or if the electric output is adequate for your future needs.
If you forego a mortgage contingency and your loan is denied… you lose your security deposit. I have seen buyers get cold feet and ask the lender to deny their application in hopes of making the mortgage contingency work in their favor but it is not that simple. Lenders have rules and regulations they have to follow. They have to document everything including the reason they deny a loan. Do not place offers out of fear. This is a 30-year commitment of A LOT of money. You can always sell your home sooner but always remember that it is a huge financial commitment so you should not take it lightly.