Source: Standard —
While waving is generally a good thing, waiving is not. This is especially true when it comes to certain contingencies when writing an offer on a home. In a frantic effort to win a bid in a highly competitive market, we are seeing too many offers waiving the due diligence and/or finance and appraisal contingencies, and it could end up potentially costing a buyer thousands of dollars when all is said and done.
In the world of real estate, a contingency refers to a condition in the Real Estate Purchase Contract that needs to occur for the transaction to continue moving forward toward settlement. With the exception of the home purchase being contingent on the sale of a buyer’s home, which we will skip right over since there are so very few offers that would be accepted in this market with that contingency, one of the next contingencies built into the Utah Real Estate Purchase Contract is the “due diligence” contingency. This is one of the most important. Even in this market, it doesn’t make a lick of sense to skip this step, and it doesn’t seem fiscally responsible to do so either (here comes the hate mail).