Flexibility when it comes to your home purchase.
In the midst of a home-buying journey, it’s natural for questions to arise. One of the most common queries we encounter is, “Can I cancel this purchase if I say now?” It’s a significant decision, and buyers often want to know their options when they’re no longer sure about proceeding with a home purchase. I’m Steve Davidson from the Davidson Real Estate Group at Simply Vegas, and today, we’ll delve into what happens after you’ve gone under contract on a house and how certain contingencies provide you with a way out if needed:
1. Inspection and due diligence period. When you enter into a contract to purchase a home, you typically have a period, often 10 to 12 days, for inspections and due diligence. During this time, buyers can order inspections and assess the property’s condition. If issues arise that make you uncomfortable, you can discuss potential repairs or credits with your agent. If necessary, you can cancel the contract. It’s important to note that every deal is unique, and solutions can vary.
2. Appraisal contingency. The appraisal contingency comes into play when you’re obtaining a loan to buy a property. Usually, you have about 20 days to complete an appraisal. If the appraised value is lower than the purchase price, you have the opportunity to renegotiate with the seller. However, the seller isn’t obligated to agree. If no resolution is reached, you can cancel the contract.
“The home-buying process involves several contingencies that offer you flexibility.”
3. Loan contingency. This contingency, which usually spans 25 to 30 days, provides a safeguard in case your loan falls through. If your lender encounters issues like job loss or changes in income, you can cancel the contract within the specified timeframe.
4. Resale package review. In cases where the property is part of a homeowner’s association, the seller provides a resale package that includes rules, regulations, and fees. Buyers have around five days to review this package and decide if they’re willing to accept the terms. If they choose not to proceed, they can cancel the contract within the designated period.
The home-buying process involves several contingencies that offer you flexibility. You’re not locked into a purchase contract without options. While these contingencies provide a way out, it’s essential to work closely with your real estate agent and understand the specific terms and deadlines within your contract. If you have questions or need guidance regarding your home purchase, feel free to reach out. We’re here to help you make informed decisions.
Remember, buying a home is a significant step, and it’s crucial to have a clear understanding of your rights and responsibilities. Don’t hesitate to contact us for any inquiries about the home-buying process or real estate in general. We’re here to assist you every step of the way.
The Davidson Real Estate Group
Realtor | S.0077479