Buying home without contingencies in current market?

Question

A local agent told me for buying homes these days, need to avoid putting in contingencies to get offer accepted by seller. I'm just wondering if it has gotten that competitive and hot a seller's market in the SF Bay Area that one needs to do that. When bought house almost a decade earlier in same area wasn't told of this issue and had contingencies in place. Just wanted a second opinion on this aside from the agent.

Russell Brazil · Answer

I dont know about the Bay area, but thats true of DC.  You aint getting an offer accepted in DC with contingencies in most cases right now.

Darius Ogloza · Answer

You stand NO chance of getting properties at the lower end of the spectrum ($1.5 million and under) in Marin with contingencies unless you go way over listing on price and even then most sellers will not hassle with inspections or financing unless on a very short fuse.  Most listings go from active to pending in under 7 days.  I do not personally follow East bay or Peninsula so I can't advise there.

Carrick Young · Answer

We sold a house in San Jose last summer and the buyer had several contingencies. They were minimal, but they were there...

David Luu · Answer

Right, I'd rather not. But I'm just wondering how bad it is in the market for you to "really" really need to do that. Like X in Y homes you'll lose to others without contingencies for example. Unless I suppose you bid higher enough to compensate.

For one who doesn't really care to get the house badly, that's not a bad idea to always put in contingencies. Depends on how much you want a particular house. Given the market I've seen in SF Bay Area, or at least San Jose, not all houses are apples to apples in case you find a gem and don't want to lose it - it may take a while to find a replacement gem if ever. The crappy cheaper houses are a dime a dozen.

Brian Garlington · Answer

@David Luu   Are you really ready to take that chance? We all know the Bay Area market is hot, but if you don't have an inspection contingency you are only hurting yourself. Trust me.

Buying home without contingencies in current market?

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