More Contracts Come With a Contingency
More offers are coming with a contingency: The buyer wants the house but the seller has to give them more time — 30 to 60 days, possibly — to try to sell their own home before they’ll make the deal final, more real estate professionals are reporting.
“In a strong real estate market, it’s harder to get away with (a sell contingency),” Eric Tyson, co-author of “Home Buying for Dummies” told the Chicago Tribune. “It adds another element of uncertainty to the deal.”
Many sellers will continue to show homes to potential buyers during the contingency period, but since it’s listed in the multiple listing service, some buyers might be less apt to take a look.
“Most contingency agreements contain a kick-out clause: If your dream home’s seller receives a noncontingent offer during the set time period, you typically have a day or two to rescind the contingency or risk losing the home,” according to the Tribune article.
Oftentimes, seller’s agents will want to visit the buyer’s home before agreeing to a contingent sale offer to check the home’s condition and location and see whether it’ll likely sell in the time period, the article notes. “The seller’s agent may even have a hand in setting the price or determining how long the home should be on the market before a price drop,” according to the article.