Contingencies and due diligence
After your offer is accepted, you have a designated period, typically ranging from a few days to a few weeks, to complete your due diligence before signing the Purchase and Sale agreement. During this time, you must address any contingencies and thoroughly investigate the property. Once this due diligence is completed, and you are satisfied with the property’s condition, you will proceed by signing the purchase and sale agreement. This signifies your commitment to the property and allows the process to move forward with the title search, financing, and ultimately, closing.
One of the primary obstacles to getting an offer accepted is often the inspection contingency. While waiving the inspection may seem like a way to strengthen an offer, we strongly advise against it as it can be a very unwise decision. An inspection contingency allows you to thoroughly evaluate the property, understand necessary maintenance, plan for repairs or upgrades, and identify any critical issues that could dissuade you from proceeding with the purchase.
To mitigate the impact of the inspection contingency on your offer, you have a couple of options. One approach is to conduct the inspection before submitting the offer. Alternatively, you can schedule the inspection for immediately after submitting the offer, ideally within hours. This way, if your offer is competitive and potentially accepted, the inspection can be completed swiftly. If you decide not to proceed with the property, this prompt action minimizes any inconvenience to the seller, allowing them to move quickly to the next prospective buyer.