When buying or selling a house, you’ve probably come across a contingent offer – an offer with a catch!
Buying a house can be a challenge for people who are in the process of selling their current home. Most people can’t pay for two homes at once, so what should they do? This situation is where contingent offers come in handy. The home buyer promises to purchase a home ONLY if their current house sells first. This contingency allows the buyer to keep from being locked in a purchase if their house doesn’t sell, but what do sellers think of these contingent offers?
Sellers can always pass on a contingent offer if they have a better one come through. A seller will want to stick with more of a “sure thing,” when selling their home, which is why cash offers are the most appealing. Obviously, a seller wants a great offer, but do contingent offers turn them off? That all depends on how the contract is written. Sometimes a contract is written in a way that allows the seller to accept a new offer when it comes up. Other times the seller can cancel the contract if the buyer doesn’t provide a loan commitment within 30 days of signing the contract.
While these escape clauses provide some level of security for the seller, it depends on what other offers a seller has gotten. If you are in a bidding war for a home and you have a contingency of selling your home, and a cash offer comes in against you, you are less likely to get that home. If a house has been sitting a while with no offers and yours comes through with a contingency on it, the seller is much more likely to accept the offer, or at least think about it more seriously.
Contingent offers are one of the reasons why having an experienced real estate agent is so crucial. They can explain every aspect of the buying and selling process, including the contract. If you’re looking to buy or sell a home, contact Robinson and Co. Realty today. Our knowledgeable agents can help you through the home buying process and make it simple!