LBI Real Estate Market Contingency

LBI Real Estate Market Contingency

Long Beach Island Real Estate Market Contingencies

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate

An LBI real estate market contingency is a term or condition of a real estate transaction that can provide a legal reason to break a contract. A contingency is a requirement that must be satisfied before a closing can take place. There are many types of contingencies, some from the buyer and some from the seller, but the most common contingencies that we encounter are:

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

LBI Real Estate Market Contingency

Below are the top five real estate sales contingencies that we commonly see in the Long Beach Island real estate market:

Home Inspection Contingency: This is the most common type of contingency that we see on Long Beach Island. This will subjugate a home sale to a satisfactory home inspection and, in some cases, an environmental inspection.

Mortgage Contingency: A mortgage contingency will require adequate financing from the buyer before a transaction is completed. The bank will investigate the financial standing of a buyer to determine if they qualify for the loan. 

Appraisal Contingency: An appraisal contingency will mandate that the transaction be subject to the home pricing out (based on comparable sales in the LBI real estate market) for the contract’s sale amount. If the home does not appraise, the buyer may choose to walk away. Alternatively, a seller can mandate that the home NOT be subject to an appraisal, and if the house is valued less than the contract sales price, the buyer will have to make up the difference or risk losing the deposit. 

Title Contingency: A title contingency is a pretty standard part of any LBI real estate transaction. This will ensure that the buyer can purchase the property free of any liens or judgments against it. Most lenders will not approve a mortgage without a clear title, so this contingency is very common in the LBI real estate market.

Home Sale Contingency: While relatively standard in a primary market, a home sale contingency is all but unheard of in the Long Beach Island real estate market. This contingency will subjugate the purchase of a home to another home’s sale. We see this most often employed in a 1031 tax exchange (but even then, it is rare).

Long Beach Island Real Estate Market Contingencies

When looking to buy or sell a home in the LBI real estate market, it helps to familiarize yourself with the different types of contingencies and understand how they can impact a real estate transaction. Buyers can significantly improve their chances of buying a home in the LBI real estate market by waiving certain contingencies (but be sure to understand the risks associated with doing so). A seller can make specific requests known upfront, stating that a home is being sold as-is and no inspection contingencies will be granted. As much as price, terms can be the deciding factor in a successful real estate transaction on Long Beach Island. If you have any questions about buyingselling or investing in the LBI real estate market, please do not hesitate to contact me.

By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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