Here’s a friendly piece of advice for today’s aggressive homebuyers.
The way the market is today with high prices and appraisal issues, many buyers are increasing their good faith money deposits and making offers with no contingencies. When you do this as a homebuyer, you need to realize you are basically agreeing that no matter what, you’re going to buy the house. If you make an offer of $500,000 on a $415,000 house, you are required to make up that gap if it doesn’t appraise, or you will lose that good faith money.
The default period for inspection and appraisal contingencies is 17 days, and the loan contingency is about 21 days. In this market, we’re receiving a lot of non-contingent offers. When you’re competing against 33 other buyers as we did for a house in Tracy last weekend, the one thing we looked at was who had the largest good faith deposit and who had removed the appraisal contingency.
If you have questions for us about good faith money, contingencies, or anything else related to real estate, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.