|
In
most
purchase
transactions
there
may
be
a
slight
challenge
or
two,
but
most
things
will
go
quite
smoothly.
However,
you
want
to
anticipate
potential
problems
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.
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.
There
are
other
common
contingencies
you
should
include
in
your
offer.
Since
you
probably
need
a
mortgage
to
buy
the
home,
a
condition
of
your
offer
should
be
that
you
successfully
obtain
suitable
financing.
Another
condition
should
be
that
the
property
appraises
for
at
least
what
you
agreed
to
pay
for
it.
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.
Or
worse. |
