To waive or not to waive?! That is the question.
In the chaos of multiple offer building, some sellers are asking for a lot more than price. As a buyer, should you put out?!
Most Illinois residential contracts include an attorney approval, inspection, and financing contingency. As a buyer, these are intended to protect you and you should long and hard about waiving them just because the seller is asking you to. Here are things to think about and some possible alternatives that can still make your offer appealing but not quite as risky
Your Home Inspection
5-7 business days is a reasonable, and common timeframe for the home inspection. While waiving the inspection is an option you have, here are two alternatives that may save you:
1. 3 Day Home Inspection Contingency:
This shortens the timeframe of risk for the seller and keeps thing moving. To offer this with confidence, have your agent reach out to the home inspector you plan to use and put a tentative hold on a time. They're booked? Call around and find someone who
2. Buy As-Is Condition - still subject to Inspection
The home inspection is meant to protect you so you can still hold one and if any red flags come up, you can get out of the deal. This way you can still make an informed decision; know the extent of the work needing to be done and if there are any issues you'll need to address ASAP, you can get them taken care of before they become bigger problems.
Are you being bullied into waiving attorney review entirely? Suggest an alternative and if they won't take it, walk away. Similar to the inspection contingency, 5-7 days is typical in the Chicago area.
Before committing to a shorter term, make sure your attorney is in town/available, and feels comfortable with a shorter term. They need time to do their due diligence so have a good heart-to-heart before making any rash decisions, particularly when this contingency is concerned.
The financing contingency is a buyer's last safety net.
1. Rush Appraisal
If the offer price is at or above where an appraisal might come in, the seller will likely be concerned about whether or not the home will appraise out. If it doesn't, it might mean going back to the drawing board. Ease their worries by offering to expedite the appraisal. Before making any promises, be sure check with your lender to find out how quickly you can the appraisal!
2. Shortened Contingency
This can be done either in conjunction with the rushed appraisal, or on it's own.
There is one final "sneaky" option. Waive the contingency but do so with the confidence that you'll either have clear to close before you're out off attorney review or that you can cancel if you have second thoughts or hit a snag. Talk with your lender about the soonest you can get a clear to close and structure your attorney review to last as long as possible. Need more time?; If your attorney can drag out the attorney review process just long enough, you may be able to get your clear to close .
Got It Under Contract?
If you sense push back- the seller may have a backup offer lined up and you need to choose whether or not these are issues you are willing to risk losing the deal over.
WIth all of these issues, talk it out with your agent and your attorney; they are here to protect you.
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