Selling your home can be a complicated process chock full of confusing details that are potentially easily overlooked and disastrous for the finalization of the transaction. To help get you in the right frame of mind to get your home sold quickly and easily, here’s what you should know about selling your house with contingencies in Oklahoma City.
As implied by the name “contingency,” these are bits that are inserted into an offer or real estate contract that must be fulfilled in order for the transaction to close.
Despite there being some circumstances where you may need a contingency to protect yourself as the seller, the general rule of thumb is the fewer contingencies included in an offer or contract, the better.
That’s not to say that all contingencies will cause problems or kill a deal, but without as many hang-ups along the way, a transaction is more likely to close.
The Bigger Picture
There are all different kinds of contingencies, but we can focus on a few that you are much more likely to encounter when selling your house.
First, there are contingencies that help create a fixed timeline for closing or a situation whereby the buyer or seller isn’t left out to dry without a home.
A sale and settlement contingency can be inserted into a contract by the buyer if they have not received an offer on their current home and thereby ensuring that the entire transaction depends on them selling their current home. This contingency normally has a stipulation that allows the seller to continue marketing their property and entertain offers while the buyer attempts to offload their existing property.
If another offer comes in that the seller would like to accept, the buyer is then given an established timeframe to vacate this contingency or void the contract.
Another contingency, called a settlement contingency, protects the buyer who has already accepted an offer on their home and is awaiting closing.
Minding the Details
Besides the more overarching types of contingencies, you may find that buyers are interested in purchasing your property under the conditions that certain repairs or inspections are done.
It’s common for a buyer using the services of a major mortgage lender to require both a home inspection and an appraisal. The area that can often be negotiated more easily is in regards to the repair clauses.
If your home appears to have major structural issues, a buyer may request a structural engineer take a look to confirm the structural integrity of the property before moving forward with the sale.
Consider All Aspects of an Offer
Ultimately, what everything comes down to is that you should take apart every offer you receive in order to see which would benefit you the most.
An offer isn’t just a price but also comes with strings attached, such as inspections, appraisals, and even requested repairs. Someone may send you an offer with a high price but a laundry list of repair contingencies. In this case, you may take a look at these repairs and discover you would be heavily chewing into your profits if you were to accept this offer as is.
Another option under these circumstances is to send a counter-offer that you feel is more acceptable. Once everything is said and done you want to be sure you’re comfortable with the offer you do accept.
Don’t be afraid to walk away from a buyer that is being overly demanding and unreasonable.