Princeton Town Topics – Let’s Talk Real Estate – February 14, 2007
HOW RISKY ARE CONTINGENT CONTRACTS?
Buyers walk into your home and fall in love with it, but they will have to sell their home before they can buy yours. Their offer contains a contingency clause that makes their purchase dependent upon selling their present home. Should you accept their offer?
Your decision should be based on several factors. Are they trying to sell their home themselves (a risky proposition!)? How long has it been on the market? If the house doesn’t sell, can the buyers take out a bridge loan or make other arrangements to complete the purchase? How important is timing for you? Will the buyers agree to let you continue marketing your home and accept a non-contingent contract (and void theirs) if their house does not sell? There should be a release clause in your contract that allows you to accept a better offer should one come along.
Contingent contracts often work out well if you enlist the help of a professional.
