What is an example of a contingency when buying a home?
Think of a contingency as an “if-then” proposition. For example: “If I’m able to sell my current home, then I’ll buy yours.” Knowing common contingencies prepares you to make a competitive homebuying offer that protects your interests and entices sellers.
Can you put in an offer on a house that is contingent?
In most cases, putting an offer in on a contingent home is an option to consider. Although it doesn’t guarantee you’ll close on the home, it does mean you could be first in line should the current contract fall through. Putting an offer in on a contingent home is similar to the homebuying process of any active listing.
What are the most common contingencies in real estate?
There are four common contingencies that every homebuyer needs to work through:
- Home inspection contingency.
- Appraisal contingency.
- Financing contingency.
- Home sale contingency.
How long is a contingent offer good for?
The buyer and seller must agree on the timeframe in which the buyer needs to secure mortgage approval. A contingency period typically lasts anywhere between 30 and 60 days. If the buyer isn’t able to get a mortgage within the agreed time, then the seller can choose to cancel the contract and find another buyer.
Why would a buyer choose to use a contingency?
Purchasing a home can be risky. There could be structural issues with a property, or the ownership of a property could be disputed. Therefore, buyers need to include contingencies on their offers so that if they find something wrong with a property, the contingency will void the sale contract.
Can a seller accept two offers at the same time?
While laws vary by state, in general, up until that contract is signed by both parties—even after counteroffers have been sent out—all new offers can be considered and accepted. Once both parties have signed it, however, the seller is pretty much locked into the deal.
What are the most common contingencies?
Though you can technically add any contingency you want to an offer, here are the 9 most common homebuying contingencies to consider.
- Home inspection contingency.
- Appraisal contingency.
- Financing contingency.
- Home sale contingency.
- Clear title contingency.
- Kick-out contingency.
- Home insurance contingency.
Can you outbid a pending offer?
*Can you outbid a pending offer? Technically, you can still submit an offer and be a potential backup to the accepted offer. The buyer can’t consider your offer unless the current sale falls through, though, so agents will usually discourage you from wasting your time and emotions on trying this.