Here are four common conditions when closing a real estate sale:
Sale of Existing Property
For buyers who are in the process of selling their existing property, this is one of the most common conditions on a real estate offer. It is usually utilized when buyers must sell their current homes before purchasing a new home. With this condition in place, you could back out of the transaction if the present property fails to sell in the pre-determined timeline.
Condition of Financing
A financing condition affords the buyer additional time to secure financing for the purchase of the residential property. Once again, if the homebuyer cannot obtain the necessary funding within a specific timeframe, the individual can exit the agreement without a financial penalty.
Home Inspection Condition
The home inspection has returned, which has been music to the ears of every home inspection professional. A home inspection condition allows the buyer to hire a professional home inspector. This person will examine the property and determine if any problems, defects, or issues could affect the home’s value. It allows the buyer to decide whether or not they want the house badly enough to deal with the problems, insist the seller address them, or back out of the deal entirely.
Home Improvement Conditions
This ties into the home inspection point, but a home improvement request can be a terrific condition for buyers. Essentially, this condition enables the buyer to request the seller to make specific improvements to the property before the sale is finalized. During negotiations, the buyers and sellers may discuss the maximum amount to be spent on repairs, an agreement on what improvements are needed to close the sale, or a provision to exit the deal if the home is in a state of disrepair.
