How Do Sales Contingencies Affect You?

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Why are contingencies so common in real estate? When you buy or sell a home, there are issues related to the Louisiana Purchase Agreement. When a buyer purchases a home, we experience three common contingencies related to inspection, appraisal, and financing.

There is a fourth contingency, too. It accounts for when a seller can only sell a home if they have already found another one to purchase. Sometimes buyers will come in with contingent offers explaining they need to sell their own home before purchasing another. It goes both ways. 

Sellers dislike contingencies unless the buyer’s home is already under contract with another buyer. Contingencies create hurdles in transactions, which sellers prefer to avoid. We frequently work with people who need to buy and sell at the same time, and we make sure that everything lines up together.

The other contingencies that we see have to do with inspections, appraisals, and financing. If a buyer sees a bad inspection report or a bad appraisal, they may back out of the deal. Sellers may back out of a deal if they find out that a buyer cannot actually afford to buy their home. There are many reasons why deals fall apart during the contingency period. Inspections go poorly, finances get disrupted, and appraisals raise questions.

As a buyer, it’s best to remove any contingencies from your offer. Much the same is true for sellers. Nobody likes dealing with these issues!

Give us a call or send us an email if you have any questions. We would be happy to help you!