Home Solutions Realty is a Real Estate Company in the Dallas TX area and made and appearance recently on The Voice Over Real Estate Radio Network and the discussion was “What is a Contingency Offer? Does the Seller need to accept one and does a buyer need to submit this type of offer to a seller.
Turns out that a contingency is quite simply a condition or requirement that must be met in order for the sale to successfully close. If any such requirements are not met, the sale may fall through and the house would likely then remain on the market. In essence, a contingency is a safety net for the buyer or seller.
Perhaps the most common type of contingency a buyer might include in an offer, known in TX as an option period. The option period gives the buyer, for a negotiated period of time, the ability to conduct a home inspection, if during that time they decide they don’t want the home for any reason they can “opt out” and the earnest money is returned to the buyer. Such a contingency is meant to protect the buyer from purchasing a home with a previously undiscovered problem.
Ideally, a prospective buyer will have a pretty strong indication from a lender in the form of a loan preapproval to back an offer and increase the likelihood that a sale will close, but financing may fall through even if a buyer has a preapproval letter in hand and the lender cannot provide financing after all the buyers paperwork is submitted.
A more common contingency is that the buyer will submit an offer to purchase the sellers home only if their current home sells. These contingencies are designed to protect a buyer against carrying two mortgage loans or is a lender required stipulation.
Unfortunately, in this busy market, these contingencies are rarely accepted by the seller in a heated up market where the seller feels they can easily get another buyer quickly without excepting a contingency offer.
Home Solutions is a member of the Top REO Brokers Nationwide Network and is one of the Nations leading real estate companies, serving the Dallas TX area since 1984. Home Solutions “Secret” To Selling A Record Number of Homes every Year and Quickly is partly due to a list of loyal buyers that brings the seller a large number of potential buyers in the first few days of the home being on the market.
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