Contingencies and Winning Offers (Part 3 of 4)

Buying

Here is Part Three of the four part series on winning the offer war. If you missed the first two,  here are the links to Part One about “PRICE” and Part Two about “TERMS.”  Today we’ll be looking at the third factor:

CONTINGENCIES

·         Once signed by buyer and seller, an offer becomes a contract.  Both sides are legally committed to its terms, which include advance agreement on how the contract can be cancelled.  These provisions are called contingencies; usually the main ones are for uncertainties buyers have about their financing, and about the property’s condition.

  •  Sellers tend to favor the highest offer, as we’ve noted before, but the best-informed sellers also pay close attention to an offer’s chances of leading to a successful sale.
  •  Strong pre-approval limits financing uncertainties.  In the present market, many sellers provide pre-sale disclosures and professional inspection reports. 
  •  When advance information is extensive, sellers and their agents might read contingencies as unwarranted uncertainties.  Many offers are being presented just now, with neither financing nor inspection contingencies.
  •  The best-prepared buyer will have made a careful assessment of any risk in entering a purchase contract without contingencies.  A seasoned agent (like myself) can be a big help here.  If you MUST include contingencies, try to make them as short as possible.

Next week I will discuss the last, and very important forth factor, PERSONAL TOUCH, which I will cover in Part Four posting August 3rd.