Recently, we’ve been discussing contingencies in real estate contracts. Contingent contracts are common, but can be very stressful if not properly handled. That’s why we’ve decided to tackle the topic in a short series, the first two parts of which you can find here and here.
This time, we’ll be talking about how to craft the best possible contingent offer. The first thing to note is people submitting contingent offers will need to be on the ball if they want to compete with other non-contingent offers the seller might be receiving. After all, multiple-offer situations are common in today’s hot market.
If your home isn’t already on the market, your home is on the market but isn’t listed at a price that will help it sell, or if you submit a lowball offer, a seller won’t be likely to accept your contingent offer. Therefore, the first step to crafting a strong contingent offer is actually to avoid these things.
As for things you should do, it’s important that you write an offer even stronger than you ordinarily would. This might mean putting down a higher earnest deposit, offering to pay a higher price for the home, or conceding to terms that will entice the seller to consider your deal. It’s all about figuring out what the seller wants and then working with your agent to play on those things.
When writing a contingent offer, keep in mind how you would feel if you were to lose out on the home. You might not be thrilled about paying a few extra thousand dollars, but is refusing to raise your offer worth the risk of getting passed over for another buyer? When you encounter the right property, you’ll likely be much more willing to do whatever it takes to secure it.
As a reminder, our team specializes in contingency contracts, so if you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.