A contingency is a contractual provision that buyers include in their purchase agreement that allows them to back out if the certain terms specified in the provision are not met. In the absence of a contingency, buyers risk losing their initial deposit if they decide not to buy the house after making an offer. So, buyers often approach sellers to agree upon a house sale contingency while deciding to purchase a house. While a contingency protects buyer’s interest, a sell risks losing the home sale, and he may have to start all over again. Therefore, should you accept a contingency offer while selling your Phoenix home? Here is an overview of the problems of accepting a contingent offer in a home sale.
Cons of Accepting A Contingent Offers In Your Phoenix Home Sale:
1. If the buyer states in his contract that he’ll purchase your Phoenix house only after his house sale, your home sale can be on hold for weeks or months as you have no idea when the buyer’s property will be sold. Therefore, you are taking a risk by withdrawing your home from the market to meet the needs of a buyer who may or may not be able to close the deal.
2. To sell a house fast in Phoenix, a few sellers take the risk of accepting a contingent offer from a buyer. But when the seller fails to meet any of the contingencies mentioned in the contract, the selling process comes to a halt. And so, the seller is entitled to refund the initial deposit placed by the buyer, as the seller could not fulfill the buyer’s contingencies. Thus, the seller will lose the sale and must start the selling process again.
3. Even if the contract permits you to keep your house on the market and accept offers, your home may be marked as “under contract” on listing sites that deter other potential buyers from contacting you. In some cases, the buyer may approach you with a settlement contingency that averts you from accepting offers from other buyers. It usually pops up when the buyer’s home sale is in progress but not yet completed.
4. When buyers come with home inspection contingencies, they inspect your house thoroughly. This will result in too much staging, burdening your family to leave the house each time the buyers come for a home inspection. Additionally, if the examination reveals serious problems, the home inspection contingency allows the buyer to cancel the deal without penalty or require you to cover the repair costs. If you think, “I need to sell my house fast in Phoenix and avoid adverse consequences of home inspection contingencies,” sell your house to cash home buyers in Phoenix who’ll purchase your house in as-is condition without bringing up any contingent offers in your house sale.
5. Mortgage contingents provide the buyers a way out of the property purchase if the buyer’s mortgage financing falls through. For this reason, you must carefully review a buyer’s pre-approval letter before accepting a contingent offer. The buyer can still be denied a mortgage even with a pre-approval letter if his financial situation changes at the last minute. So, it is better not to accept any mortgage contingency offers on your Phoenix house sale.
In short, any contingencies that buyers bring to your table will affect the smooth functioning of your house sales as it prolongs the closing process and keeps away other potential buyers who have an interest in your property. To avoid such sophisticated contingencies and save time and dollars, sell your Phoenix house to us. At Go Fast Offer, we buy houses in Phoenix for cash without any hassles and contingencies and close the deal within thirty days.