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2019-04-03 12:24:39
Buyer’s Contingency 101

Buyer’s Contingency 101

Buying a new home before yours is sold is tricky, but it’s not impossible. One way to do it is through a home sale contingency, where you make an offer on a home under the agreement that you will close only if your own home sells. When evaluating this option, here’s what buyers and sellers should consider.

Think Strategically

The first question I always get from buyers and sellers is if a home sale contingency is right for them. The short answer is: yes and no. I recommend buyers use this option if there’s a lack of inventory and not a lot of options on the market, or if the property ranks as a dream home. If a seller receives this offer, I advise them to accept if there’s a limited number of buyers, and the property has been on the market a while.

Another option is the home close contingency. This means the potential buyer already has a purchase contract on the current home, eliminating some of the risk for the seller. This is a good option if the buyer needs proceeds from the sale to purchase a new house. For sellers, this is a good offer to accept, as long as a thorough attorney review, inspection, and appraisal process is completed.

Why a Kick Out Clause Matters

A kick out clause gives a seller the right to continue showing the home and sell to another buyer if they receive a better offer and the original buyer agrees. Buyers generally want a longer window of 72 hours to give them more time to find a buyer for their current home, while sellers prefer 48 hours to better leverage the offer. As your agent, I’m here to advocate for you — whether you’re buying or selling — and a kick out clause represents everyone’s interests.
 
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2019-04-03 12:27:10
Make-A-Wish Foundation

2019-04-03 12:24:39
Buyer’s Contingency 101


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