Should You Waive Contingencies When You Buy a Farm in Lake City?

If you’re buying a farm for sale in Lake City or another North Florida community, you may be wondering whether you should waive contingencies. This guide explains.

Should You Waive Contingencies When You Buy a Farm in Lake City?

Contingencies are conditions that must be met in order for your transaction to go through. Your real estate agent will build these contingencies into your purchase offer in order to protect you.

The most common contingencies involve financing, inspections and appraisals.

Should You Waive the Financing Contingency?

A financing contingency says that if you’re not able to secure the funds to purchase the farm, you can back out of the deal with no penalty period in fact, you may even keep your earnest money deposit. naturally, you must make a good faith effort to get financing, but if it doesn’t pan out, you’re off the hook.

You probably shouldn’t waive this contingency if you want to buy a farm, even if you want the farm very badly. Unless you’re independently wealthy and can afford to purchase the farm with money out of your own bank account, it’s probably too big of a risk.

Should You Waive the Inspection Contingency?

An inspection contingency gives you the right to walk away from the deal if the inspector you higher fines issues with the property that you just can’t live with and that the seller is unwilling to fix. When you have this contingency in your contract, you are allowed to make a grand exit with your earnest money deposit. However, if you don’t have this contingency, the seller will most likely be able to keep your earnest money deposit if you walk away from the deal – even if the inspector turned up something horrible on the property.

The only thing really at risk here is your earnest money deposit. if you’re thinking about waiving this contingency, you should talk to your real estate agent first. It may be worth the risk, but not in all cases.

Should You Waive the Appraisal Contingency?

An appraisal contingency says that if the property appraises for less than you want to pay for it, you can cancel the transaction and keep your earnest money deposit. In the worst-case scenario, you could waive this contingency and the seller could take you to court and try to get you to purchase the property even if your lender isn’t willing to give you the full amount. That means coming up with money out of your own pocket, over and above what the lender is willing to give you for the property, so you can give it to the seller to reach the agreed-upon price.

Your real estate agent may advise you to avoid waiving this contingency. However, sometimes real estate agents encourage their buyers to offer up to a certain amount of money over the appraised value in case the property appraises low. If that’s something you’re interested in pursuing, talk to your real estate agent about your options.

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Should You Waive Contingencies When You Buy a Farm in Lake City?