Waiving a Mortgage Contingency
There is a lack of “inventory”, or properties for sale, in certain segments of the local market. This reality has persisted for 2+ years, and changed how purchasers approach negotiating for desirable properties.
Desirable properties are often overwhelmed with traffic as buyers sit ready to pounce, with little from which to choose. As an owner of a desirable property receives offers, bidders begin to compete for the property on terms most appealing to the owner.
Obviously, sellers are most enticed by the highest price bid on their home. That said, other offer features which present a simpler, “cleaner” deal are also enticing.
In our market, that may mean a deal that is not only strong in price, but is also non-mortgage contingent.
Waiving a mortgage contingency is a calculated gamble. It is one that can be and is often taken to win a bidding war, but needs to be fully understood, as doing so puts a purchaser’s money at risk.
Before waiving a mortgage contingency, a purchaser is wise to work with a broker who knows the risks, knows ways to mitigate them, and has grounded local market knowledge and creative negotiating skills.
Making one’s offer attractive but retaining the most important elements of protection if something unpredictable happens down the road is possible and essential, and one that shouldn’t be left to inexperience.