The real estate market in Illinois has its fair share of fixer-uppers and beautiful older homes. A well-maintained older property can be a wonderful home, but the vintage appeal of some houses hides significant property issues. Some people buy what they imagine will be a fun project, only to invest many times what they expect in making the home safe and resellable.
The price that you offer for a property should reflect what the seller asked for it and the repairs you think you will need to make to the home. There’s always a possibility that more issues with the property will come to light after you make the offer.
Including contingencies in your offer can be a way to protect yourself when making an offer on an older property that could have significant latent defects.
How do real estate contingencies work?
When you include a contingency in your offer, you essentially provide yourself with a legal means of backing out of the transaction. Many people include appraisal contingencies in their offer since they will not be able to go through with closing if the appraisal comes in low and they can’t get a mortgage. Other people will include financing contingency fees for that same reason.
Inspection contingencies are also important, as they allow a buyer to cancel the closing or renegotiate the offer if an inspector finds something significantly wrong with the property. Especially when making offers on older homes, protecting yourself from a bad real estate investment is as important as offering a competitive amount.
Including the right terms in your real estate offers will help you minimize your risks while house shopping.