How to Work Through Contingencies When Selling Your Home

Work Through Contingencies When Selling Your Home

When selling your home, you'll often encounter buyers including contingencies in their offers. Any contingency can potentially delay your sale, so it’s important to discuss these in detail with your agent. Here are some common contingencies that buyers often include in purchase agreements:

Inspection Contingency

A building and pest inspection is the most common contingency, and for good reason. Buyers are making a significant investment and need assurance that there are no major surprises. This contingency allows them to get a third-party home inspection to ensure everything is in order.

Repairs Contingency

If the building inspector finds issues in the home, the buyer has a few options:

• Ask you to perform the repairs before closing.
• Request repair credits so they can handle the repairs themselves.
• Do nothing and proceed with the deal as is.

Financing Contingency

This contingency allows a buyer to back out of the sale if their mortgage is not approved. It can also apply if the bank’s valuation is significantly different from the sale price.

Home Sale Contingency

This is a contingency that many sellers are cautious about. It gives the buyer a specified amount of time to find a buyer for their current home and allows them to walk away from the sale if they fail to do so. A home sale contingency can be risky for sellers because there is no guarantee that the buyer’s home will sell. Before agreeing to this contingency, it’s important to research the potential buyer’s current home:

• Is their home actually on the market?
• Ensure it is listed at the correct price by checking the comps.
• Find out how long it has been on the market. If it has been listed for some time, ask why.
• Check the average days on the market statistics and see how their home compares.

The Role of Contingencies

Contingencies are placed in a contract to protect both the buyer and the seller. It’s very important to talk with your agent and thoroughly understand any contingencies in detail before you sign anything.

Welcome Home

At JKL, we’re here to help you navigate through all the details, including contingencies, to ensure a smooth and successful sale. Our experienced team will guide you every step of the way, making sure you’re well-informed and confident.

Experience our JKL real estate family. We’ll put the welcome mat out for you!