Although home buying contingencies are there to protect the buyer, you might look at them differently as the one selling the home. In fact, many sellers choose not to consider offers with multiple buyer contingencies.
Read on as we share some of the main contingencies most buyers include in their offers and show you how you can avoid them and sell your house fast in Hendersonville.
Drawbacks of Buyer Contingencies for Sellers
Part of closing your home’s sale quickly involves meeting a buyer’s conditions. Sometimes, this could mean accepting offers that have contingencies. Entertaining such real estate contract conditions, however, can have a few drawbacks.
For instance, you could get a less attractive offer or face a much longer sale process. The main disadvantage, however, is the high risk that the deal may fall through.
Common Types of Home Buying Contingencies
While they do have a few disadvantages, it wouldn’t hurt to accept a few contingencies, especially those that you can control. However, before you do so, it’s a good idea to understand the common types of contingencies buyers might include in their offer.
Home Inspection Contingency
This gives the buyer the chance to have a professional inspect your home before closing. If issues are found, the buyer could demand repairs or back out of the sale entirely.
Appraisal Contingency
Next up on our list of home buying contingencies is the appraisal contingency. Let’s say you’ve accepted an offer with this contingency. Before you can close, the buyer’s lender will conduct an appraisal to determine whether the amount they are loaning them matches the home’s value.
If the appraisal deems your home to be worth less, the buyer can exit the deal without losing their earnest money deposit.
Mortgage Financing Contingency
With this contingency, the buyer gets a specific time limit to find financing for their loan. If the limit expires and they have not yet secured the loan, they can walk away from the deal.
Unlike the previous contingency, this can be unfair to you because the ability of the buyer securing a loan is completely out of your control.
Sale of Existing Home Contingency
This contingency, much like the one before, puts sellers in a rather inconvenient position. Here, the sale of your home is reliant on the sale of the buyer’s current property. If the buyer is unable to sell their home during a predetermined period, they can cancel the purchase agreement.
Sell Your Home Without Worrying About Buyer Contingencies
Home buying contingencies play a vital role in safeguarding the buyer. However, they can also make things a lot more complicated for you. This is why most sellers are much less likely to accept offers that come with contingencies.
Thankfully, My Tennessee Home Solution offers an even better alternative. We’ll make a fair cash offer on your house as it is and close the sale in a matter of days.
Talk to us today at (615) 933-5431 to learn more.
