In spite of the astronomical prices that are destined to rise even more in a low-supply housing market, single digit mortgage interest rates continue to attract buyers who compete against each other for available homes in Northern Virginia. This shortage of homes is a direct result of the inequity realized by sellers who would surrender the profits on the sale of their homes to sellers of their new homes, unless those new homes were purchased in a more buyer-friendly housing market. Understandably, this no-win reality forces many owners, who want to remain in Northern Virginia, not to sell, with the result that buyers are left to compete for estate sales, moving sales, sales by real estate investors who are relocating their portfolios out of …show more content…
+ With other buyers also using escalation clauses, the winning bidder will be the buyer with the highest escalation ceiling, thereby continuing to push prices up. + A higher price may cause the house not to appraise, thereby forcing the buyer to make up the difference in the escalated price and the appraised value in cash, or to negate the contract. ELIMINATION OF THE MORTGAGE CONTINGENCY A mortgage contingency is a provision in the Sales Contract that allows the buyer an agreed-upon amount of time to seek financing for the purchase of the house. In today's sellers' market, few, if any sellers are willing to wait for a buyer to arrange for financing when there are plenty of pre-approved buyers standing in line to buy their houses. For this reason, a buyer should arrange for financing before submitting an offer and then be able to include a lender's letter of loan …show more content…
By allowing the buyer to have such a home inspection performed, the seller is potentially endangering the sales contract by opening the possibility of renegotiations that could demand expensive work to be performed at the cost of the seller, or failing to agree to such new demands, may provide an opportunity for the buyer to cancel the contract without incurring a financial