The Big Question many sellers ask is “Should I accept a contingent contract on my home”? So our answer to that question is usually another question. Do you want to put selling your home on hold while waiting for someone else to sell their home first? So many questions, so many decisions, how can you protect yourself?
We are here to help with your questions,
We will try to help you sort through some of these questions and make the decision that is right for you and your family. When you have finally concluded it is time to sell your home then like everything else in our lives these days, we want it right now! Sometimes the emotions of getting the job done immediately will cause us to make unwise decisions, we think OK I have a buyer, but should I accept a contingent contract on my home with a kick-out. Beware you could be opening yourself up to making a mistake. What’s good for one person is not always right for another. There are many things to consider. This article about contingencies might also help you.
The benefit of a contingency for the Seller
The benefit of a contingency, if you’re a buyer is that the seller is taking their home off the market waiting for your home to sell. The buyer has the best of both worlds they have a house sitting there waiting for them just in case they want to buy it, but a lot of times they are still looking at other homes to see if something better comes along. Now, remember everything good comes at a cost. So the benefit for the seller in accepting a contingent contract is the buyer will most likely have to pay a little more for the comfort of knowing they have a home waiting for them.
Who is in control
If you like control of a situation, this may not be a good option for you. The downside for the seller with a contingent contract (even with a) kick out, is that their home will have a decrease in buyers paying attention to it. Agents hate to show contingent homes because we never know if the previous buyer can firm up. We do not want to take our buyers and have them fall in love with a piece of property that the previous buyers are going to firm up on and then we are then dealing with disappointed buyers. So the moral to this is the seller is putting all their eggs in one basket so to speak, and it’s not even their basket. Everything hinges on the buyer getting their homes sold and still wanting to buy the sellers home.
The seller has no control over how their potential buyer’s home shows. The seller cannot control, the cleanliness, the ease of showings, or if the home is priced at the fair market value. When a seller takes a contingent upon a sale contract, they are giving up a lot of control over the sale of their home.
The positive side for the Buyer & the Sellers
If we represent the buyers, we love a contingency, but if we represent the seller, we would seldom recommend that the seller take one. Now there are situations where it works out to be a good thing, but you want to take some time and look at all the positives and negatives and see what will work best for you, your family and your situation.
As the seller, if the buyer likes your home enough to put their house up for sale they will be more motivated to allow last-minute showings, to allow inconvenient viewings, and to negotiate more on the price if they have to get that house sold before they can even write a contract on your home.
So Should I accept a Contingent Contract on my Home?
The moral of the story is contingencies are great for buyers but usually not the best for sellers, yet each situation is different and needs professional guidance. So if you questioning yourself asking should I accept a contingent contract on my home you might want to get the help of a professional who has your best interest at heart.