In most home or real estate purchases there may be a very challenges but most things is to work through it if you want to get that home brought, according to Jeff Lowe, Bridgeport Realtor. You want to try anticipate as many potential problems as possible as early as possible so that if something does go wrong, you can cancel the contract without penalty. These are called “contingencies” and you must be sure to include them when you offer to buy a home.
Contingencies basically give you excuses to get out of the deal because of potential problems or defects later discovered.
For example, some “move-up” buyers often agree to purchase a home before selling their previous home. Even if the home is already sold, it is probably a “pending sale” and has not closed. Therefore, you should make closing your own sale a condition of your offer. If you do not include this as a contingency, you may find yourself making two mortgage payments instead of one.
Other common contingencies you should include in your offer for your real estate purchase, getting proper financing, home passing inspection, the property gets appraised at a certain price. During the escrow period you are likely to require certain inspections, and another contingency should be that it pass those inspections.
Basically, contingencies protect you in case you cannot perform or choose not to perform on a promise to buy a home. If you cancel a contract without having built-in conditions and contingencies, you could find yourself forfeiting your earnest money deposit. So its best to sit down with your real estate agent, some one like Jeff Lowe and figure out all your conditions and contiguencies to adequately protect yourself.