Introduction:Verify my mortgage eligibility (Dec 9th, 2023)
Home buying is often fraught with uncertainties, with contingent offers adding an extra layer of complexity. A sale that’s contingent can indeed fall through, impacting both buyers and sellers. This exhaustive guide by Priority 1 Lending sheds light on the frequency of contingent offers falling through and how to navigate this precarious situation.
Understanding Contingent Offers:
A contingent offer is a conditional agreement in which the completion of the home sale is reliant on specific circumstances. Typical contingencies include financing, inspections, and the sale of the buyer’s current home.Verify my mortgage eligibility (Dec 9th, 2023)
Why Do Contingent Offers Fall Through?
Contingent offers can fall through for a variety of reasons. These can range from the buyer not getting approved for a mortgage, to significant issues discovered during the home inspection that the buyer and seller cannot agree to resolve, to the buyer not being able to sell their current home in a set timeframe.
How Often Do Contingent Offers Fall Through?Verify my mortgage eligibility (Dec 9th, 2023)
The frequency of contingent offers falling through depends largely on market conditions and the specifics of the contingencies. However, it’s important to note that while these situations do occur, they’re not the majority. Most contingent offers proceed to a successful closing, especially when both parties are motivated to close the deal and are flexible in negotiations.
Mitigating the Risks:
While there’s always some risk involved, both buyers and sellers can take steps to mitigate the likelihood of a contingent offer falling through:Verify my mortgage eligibility (Dec 9th, 2023)
1. For Buyers: Secure mortgage pre-approval, get a thorough home inspection, and price your current home realistically to facilitate a quicker sale.
2. For Sellers: Consider the strength of the contingent offer, the buyer’s readiness to buy, and the current market conditions. It may also be helpful to include a ‘kick-out clause’ to allow you to continue marketing your property to other buyers.
While it’s common for buyers and sellers to fear a deal falling apart, remember that most contingent offers do result in successful transactions. In the complex world of real estate transactions, Priority 1 Lending stands ready to guide you. Our professional team offers the knowledge and support to help you navigate these uncertainties, ensuring you’re well-informed and equipped to handle any situation. Regardless of the twists and turns in your home buying journey, our commitment to your success never wavers.Show me today's rates (Dec 9th, 2023)