What Is A Contingency Contract?
Buyers walk into your home and fall in love with it. There is one problem--they have to sell their home before they can buy yours. Their offer to purchase your home contains a "contingency clause" which makes the purchase dependent upon, or contingent upon, selling their present home. Should you accept a contingent offer?
Your decision should be based on several factors.
1. Is their home being professionally marketed at this time, or are they trying to sell it themselves? How long has it been on the market? Is it overpriced? What are the average market times in their neighborhood?
2. If the house doesn't sell in a specified time period, can the buyers take out a bridge loan or make other financial arrangements to get to the closing table?
3. How important is timing for you? Are you on a time schedule to relocate to another city or are you flexible?
4. Will the buyers agree to let you continue marketing your home and accept a non-contingent contract (and void theirs) if their house does not sell?
Contingent contracts often work out well, but you need the help of a professional to weigh the pros and cons. So, contact us. We are pleased to be able to help and will provide you with top-notch service!
Buyers walk into your home and fall in love with it. There is one problem--they have to sell their home before they can buy yours. Their offer to purchase your home contains a "contingency clause" which makes the purchase dependent upon, or contingent upon, selling their present home. Should you accept a contingent offer?
Your decision should be based on several factors.
1. Is their home being professionally marketed at this time, or are they trying to sell it themselves? How long has it been on the market? Is it overpriced? What are the average market times in their neighborhood?
2. If the house doesn't sell in a specified time period, can the buyers take out a bridge loan or make other financial arrangements to get to the closing table?
3. How important is timing for you? Are you on a time schedule to relocate to another city or are you flexible?
4. Will the buyers agree to let you continue marketing your home and accept a non-contingent contract (and void theirs) if their house does not sell?
Contingent contracts often work out well, but you need the help of a professional to weigh the pros and cons. So, contact us. We are pleased to be able to help and will provide you with top-notch service!
posted by The Hat Team at 10:19 AM
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