Today I’m explaining contingencies and how they affect your offer on a property.
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What is a contingency and how does it impact your offer on a home? Contingencies mean conditions. When making an offer, you can indicate whether it will have contingencies. If you write an offer with contingencies, it means your offer will only go through if these conditions are met.
Common types of contingencies:
- Inspection contingencies
- Appraisal contingencies
- Loan contingencies
“For buyers, contingencies work as protections."
You can put any number of contingencies into an offer—all or none, it’s up to you. When the seller reviews the offer, they not only compare pricing but the terms too. One of the crucial terms to compare are contingencies. Contingencies will impact a seller’s decision.
For buyers, contingencies work as protections. You need to weigh whether you want maximum protection or a better chance of the seller accepting your offer. There’s a delicate balance between the two. Do your homework to ensure you can provide a strong offer with few contingencies. In general, a seller will have a harder time accepting an offer if it has many contingencies.
If you have any questions about how to write a strong offer with contingencies or concerning real estate in general, please call or email us. We would be glad to help you.
