A recent survey by the National Association of Realtors found that six percent of home contracts were terminated due to unmet criteria in the first three months of 2022. If you’ve ever had the sale of your home fall through, you know how difficult it can be. The frustration of having your hopes dashed increases exponentially if you had thought you were on the cusp of closing a transaction. Then there is the inconvenience of having to market and sell the home all over again, which costs both time and money.
The Right Ideas
It’s common for ideas to be rejected due of issues beyond of the proposer’s control. Both the buyer’s application for a mortgage and the sale of their current home may have been rejected. It’s also possible that the buyer opted not to go further because of whatever the inspector found. But how often do contingent offers fall through?
Remember that the buyer’s request for contingencies is not binding until you specifically agree to it. This is especially crucial to remember in a seller’s market, when interested parties will be trying to make the most attractive offer. Even if you decide to be adaptable with regards to certain possible outcomes, you should always make an attempt to negotiate favourable terms in order to defend your interests.
Should you want the assistance of a seasoned negotiator, our friends at Clever Real Estate would be happy to provide a hand. With Clever’s free service, you may be connected with licenced real estate agents working for prestigious national brokerages like Keller Williams and Coldwell Banker. The greatest news is that, at just 1.5%, your listing fees will be far lower than the average of 3% that sellers pay. Using Clever to find the right agent may save a seller an average of $7,000.
When a real estate deal is contingent, what does it mean?
When a property’s status is indicated as “contingent,” it means the seller has accepted an offer but the deal can’t close unless a specific condition, or “contingency,” is satisfied. Most real estate deals contain standard contingencies like a buyer’s inspection period and a copy of the title report.
If an offer comes with stipulations, should you take it anyway?
In general, you should be very careful before accepting an offer with restrictions, and you should never accept any conditions if an offer is made to you that does not include any. With contingent bids, the stakes are greater since the deal won’t go through unless certain criteria are met beforehand.
Moreover, MLS boards require that you temporarily suspend an active listing in favour of a provisional or pending one. Your ability to promote the home’s availability as “for sale” will end once you accept a conditional offer.
Conclusion
You should seriously consider accepting a contingent offer on the property if the buyer’s current home is already in the final stages of the escrow process. If the buyer is serious, the home sale should close within a matter of weeks, if not days. If the transaction your buyer is closing on falls through before the escrow term is through, you have the right to cancel your escrow with them.
