3 Things To Know About Contingent Offers On Homes
When you are trying to sell your home, your realtor might approach you with a contingent offer. If you have never sold a house before, you probably will not understand what this is or what it means. Before you agree to accept this offer, it is important to understand the following three things.
What Contingency Means
When a purchase offer is made on contingency, it means that something must happen before the buyer will sell the house. In many cases, this means the buyer must first sell his or her home before buying yours.
There are other types of contingent offers too, including one that means the sale will not go through unless the house passes a home inspection. When your realtor tells you the offer is a contingent offer, make sure you understand what the contingency is before you agree to accept it.
What Are The Risks
The biggest risk with a contingent offer is that the sale will not end up closing. If the buyer must first sell a house in order to buy yours, you should realize there is a risk the buyer's home will not sell. When you accept a contingent offer, it means that you will temporarily remove your home from the market, and no one else will be able to make an offer on it during this time.
If the buyer's house does not sell, the contingent offer may turn out to be a waste of time. This is why you must ensure there is a reasonable time frame listed if you accept a contingent offer. For example, you could agree to the offer for 30 or 60 days. If the buyer is still waiting for someone to purchase his or her home at this time, the deal is off, and you will be able to start showing your house again.
Things To Consider
There are several things you should consider before you accept a contingency offer based on the sale of the buyer's other home. You should find out:
- Is the house already up for sale?
- Is there a purchase offer on the house already?
- Is the house priced right?
If there is already an offer on the house and the buyer is just waiting to close on it, accepting the contingent offer might not be as risky to you.
If you are not sure what to do in this situation, talk to your realtor. Your realtor will help you understand what this means as well as the risks involved. To learn more, contact a realtor today, like those at Homes for Sale by Coldwell Banker Complete Real Estate.