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Kevin McCormally: I am Kevin McCormally of Kiplinger's and I am here Pat Esswein, the Housing Editor of Kiplinger's Personal Finance Magazine to talk about contingencies in home buying contracts.

Pat, in the old days when we had a seller's market, we heard stories about buyers giving up all sorts of contingencies; buying a house basically site unseen. What has happened now that we have come back into more of a buyer's market? Have contingencies come back on the same?

Pat Esswein: Absolutely, contingencies that they never should have given up such as those for home inspection and pest inspection have certainly come back. But buyers are also asking for contingencies for the sale of their own home or for getting financing for their purchase.

Kevin McCormally: Is it possible for buyers to go too far to put in too many contingencies and actually hurt their chance of getting the house they want?

Pat Esswein: That is possible, especially if you are looking at a very desirable property, you still may be bidding against other buyers; so the cleaner your contract the more power you will always have in negotiation.

Kevin McCormally: Okay, Pat, are there any contingencies that you would recommend that no one give up today? I mean should you still have the inspection contingency?

Pat Esswein: Absolutely and this is something that people should have had before as well, and were foolish to sacrifice.

Kevin McCormally: Okay, thank you Pat.

Kevin McCormally: I am Kevin McCormally of Kiplinger's and I am here Pat Esswein, the Housing Editor of Kiplinger's Personal Finance Magazine to talk about contingencies in home buying contracts. Pat, in the old days when we had a seller's market, we heard stories about buyers giving up all sorts of... click to read more