A future event or circumstance that is possible but cannot be predicted with certainty.
The contingencies you will encounter most in Real Estate are the home inspection contingency, financial contingency, and the appraisal contingency.
The most common contingency is the home inspection contingency. This contingency basically states that if, at any time during the home inspection process you and the seller are not able to reach agreeable terms, you are allowed to void the contract and receive your earnest money deposit back without penalty. Essentially, these contingencies are there to protect YOU – the consumer – in the unforeseen event that something is not going well with the purchase of the home.
What if you make an offer but the seller finds that your financing contingency is just too long? Why do they care?
From the Seller’s prospective all of the contingencies are a risk, and if you make the contingencies too long or to aggressive, you risk turning the Seller off in regards to your offer. Most Sellers are looking for short timelines and to secure the strongest offer they can get. So the bottom line is, keep your contingencies to a reasonable and attainable limit, protect yourself, but also help instill confidence and security within your offer to the Seller.
BUYER TIP: If you are bidding on a home with multiple offers, sometimes it can help to shorten contingency periods – or waive them altogether. You may not necessarily have to pay more money, and you may win by just being more flexible!
If you are looking to buy or sell a home, or need help navigating or negotiating a contingency, contact us today – we would love to help!
The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.