Everything Home Sellers Need to Know About Contingencies
We all wish that selling a home was a flawless process. However, this isn’t always the case! In fact, each real estate transaction will come with certain contingencies. So, what does it mean if a house is contingent?
Are you selling your home? If so, it’s important that you know what contingencies are, and what a contingent offer is.
We believe that everyone should know about what contingencies are when it comes to selling their home! That’s why, here at Glenn Steil Style Real Estate, as Montrose real estate agents, we have gathered some information to assist you with knowing what contingencies are. So, if you would like to learn more, be sure to continue reading:
· What Are Contingent Offers? If you receive a contingent offer, it means that there are certain criteria’s that need to be fulfilled, before the buyer’s offer can become a legally binding contract. Overall, contingencies are often presented to protect buyers, so that they can back out of sale, depending on the circumstances, if they choose to. However, if you are the seller, know that you can still entertain other offers while the contingencies are being removed, but you can’t enter into another contract.
· Top Contingencies. There are many contingencies that you could come across. Here are the top ones:
o Financing. Most people buying homes won’t be coming in with all-cash offers. So, they will need to get financed. As they go through the process of obtaining a mortgage, many home buyers will make their offer contingent on getting the loan that they want.
o A Home Inspection. Home buyers are most likely going to want to receive a home inspection contingency, meaning that the home buyer will have a home inspection completed of the house, to discover any problems, and to make sure that the home is in good shape. If any problems are found, this contingency allows the home buyer to either back out without penalty, request more inspections by specialists, or negotiate with the seller so that the problems can be fixed.
o An Appraisal. The value of a home will most likely not be known by the home buyer. Therefore, they will most likely ask for an appraisal contingency, providing them with the opportunity to hire an appraiser to discover what the value of the property is. If the appraisal comes in lower than the sale price, the buyer will then have the option to back out, or re-negotiate.
· The Outcome. In general, a real estate contract is a legal agreement that showcases the roles and obligations of both the buyer and the seller in a real estate transaction. Contingencies are made part of the contract and should be given a great deal of reviewing, as you wouldn’t want any costly discrepancies to be presented.
If you are selling your home, it’s important that you are aware of what contingencies are! Hopefully this information has provided you with some helpful insight to utilize for your own home-selling experience.
Are you all set to work with a real estate agent in Montrose, Colorado to buy or sale your own home with? If so, please don’t hesitate to contact us here at Glenn Steil Style Real Estate, as we are all set to be yours!