While we all wish that selling a home was a flawless process, this usually isn’t the case! In fact, reality is, that each real estate transaction will come with certain contingencies. But, what does it really mean if a house is contingent?
If you are selling your home, it’s important that you are aware of what contingencies are, and what a contingent offer is.
We believe that everyone should be knowledgeable about contingencies when it comes to selling their home! That’s why, here at Kim Holland Homes, as Massapequa realtors, we have comprised some information to assist you with knowing what contingencies are. Would you like to learn more? If so, be sure to read on:
- What is a Contingent Offer? Receiving a contingent offer means that there are certain criterias that need to be fulfilled before the buyer’s offer becomes a legally binding contract. In general, contingencies are often set in place to protect buyers, so that they can back out of sale depending on the circumstances. However, as the seller, know that you can still entertain other offers while the various contingencies are being removed, but you can’t enter into another contract.
- What Are the Most Common Contingencies? There are a variety of contingencies that could be encountered. Here are the most common ones:
- Home Inspection Contingency. Most home buyers are going to want to receive a home inspection contingency. This means that the home buyer will have a home inspection completed of your house, to make sure that it is in good shape, and to rule out any problems. If issues are found, this contingency allows the home buyer to either back out without penalty, order additional inspections by specialists, or negotiate with the seller on fixing the problems.
- Financing Contingency. Seeing as most home buyers won’t be coming in with all-cash offers when it comes to purchasing a home, know that they will need to get financed. So, in the process of obtaining a mortgage, many home buyers will make their offer contingent on getting the loan.
- Appraisal Contingency. A home buyer most likely isn’t aware of the value of a home. So, they will most likely ask for an appraisal contingency, which provides them with the opportunity to hire an appraiser to determine the value of the property. If the appraisal comes in at less than the sale price, which can happen in a sellers market, the buyer then has the option to back or, or renegotiate.
- The Bottom Line. You have the right to not approve some or any of these contingencies from a buyer. As the homeowner, it is your choice to decide what you want to accept. With the guidance of Kim Holland Homes, we can suggest the most common and normal contract contingencies, so that you can move forward with a great offer! Overall, a real estate contract is a legal agreement that defines the roles and obligations of both the seller and buyer in a real estate transaction. Contingencies are made part of the contract and should be given a great deal of attention and understanding, as you wouldn’t want any costly discrepancies to be showcased.
As a home seller, it’s important that you are aware of what contingencies are! We hope that this information has provided you with some helpful insight to utilize for your own home-selling experience.
Would you like to work with a realtor in Massapequa, New York to sell your own home with? If so, please don’t hesitate to contact us here at Kim Holland Homes, as we would be honored with the opportunity to be yours!