Do They Still Get a Loan?
Although this sounds confusing for a buyer to waive their financing contingency when they are getting a loan, the buyer feels that other buyers bidding will do the same thing or could be all cash. Competition in an up market leads to the waiver of a financing contingency yet many sellers do not understand why the buyer is still getting a loan and their lender is still sending out an appraiser. If this makes my sellers uncomfortable, I issue a counter offer from the seller back to the buyer’s agent stating: “Should there be any shortfall between the purchase price and the appraised value, the buyer will cover that difference.” Once the buyer signs this it can make you, as the seller, feel comfortable in accepting an offer with no loan or appraisal contingency.
