Sellers April 1, 2024

Understanding Contingencies When Selling Your Home

If you’re preparing to sell your home in Kitsap County or in the surrounding area, there is a good chance you will find an enthusiastic buyer. However, their offer may contain contingencies. Contingencies are certain conditions that must be met before the sale of a home is finalized. They are often meant to help buyers protect their interests. As the home seller, it’s important to understand contingencies you may encounter when an offer is presented.

Are contingencies common?

Yes, contingencies are quite common. If the required conditions are not met, then the seller or buyer can exit the contract. It is common for a buyer to include contingencies in their offer.

What are common contingencies?

Let’s discuss some common contingencies. First, there is the home inspection contingency. This allows the buyer to have a home inspection within a set period of time. If an inspector finds unsatisfactory conditions or concerning areas, the buyer might negotiate the price or request repairs. The contingency could require repairs to be completed before the home sale is finalized. This is why a pre-listing inspection is so valuable for home sellers. It will ensure you won’t find any surprises that may impede the sale of your home.

An appraisal contingency could play a role in financing. This contingency requires that the house must be appraised at the sale price or higher. Depending on the agreement, this contingency may also stipulate that the sale price will be reduced to the appraised value if the appraisal is lower.

A buyer might also present a home sale contingency to you as the seller. This contingency is often included when buyers are trying to buy a new house while selling their current home at the same time. As a seller, it is important to consider this carefully. You can require a specific time frame for the other home sale to take place. If the other home is not sold in time, that will void the contract. However, you may lose out on other potential offers during that time. But if the buyer’s offer is strong, a home sale contingency can be worth it.

Finally, a title contingency is common. Before the sale is finalized, a search will be conducted to ensure there are no liens or judgments against the property. It’s a good idea to pull a pre-title report prior to listing your home to set yourself up for a smoother transaction.

How can I ensure my home is prepared?

Avoid these mistakes, and get all the necessary documents together. Gather your home’s title history and documentation regarding your property’s condition. Ask your trusted, local real estate agent to conduct a Comparative Market Analysis. Have a pre-listing inspection completed. This will give you time to make necessary home improvements, which will give you a high return on your investment. Staging can also be very beneficial.

Also, consider the Windermere Ready program. Your Windermere real estate agent can create a customized plan of action. And, Windermere can provide financial assistance so you can sell your home for more in less time. Watch the video below to learn more about this advantageous program.

Who should I consult with to review contingencies?

A knowledgeable agent can walk you through it all. They understand your needs and will advocate for them. It’s crucial to have a strong negotiator at your side, especially when discussing contingencies. Don’t be afraid to ask questions so that you can make well-informed decisions.