Contingent: Is a Contingent offer a good thing or a bad thing?
on Tuesday, September 4th, 2018 at 2:21pm.
With the Denver market as crazy as its been the past few years I think everyone that owns a home has pondered selling; but with so many multiple offer situations out there how would that work?If you currently own a home and it stresses you out to think about putting your home on the market, finding a new home, moving, and how the timeline works…then this REAL Vocabulary word is for you!If you are selling a home and accepting a contingent offer from a buyer this information is equally helpful for you to understand what you are entering into.
The Websters dictionary definition of contingent is: occurring or existing only if (certain other circumstances) are the case; dependent on.
While REALTOR.COM says that “It means an offer on a home has been made and the seller has accepted it, but the finalized sale is contingent upon certain criteria that have to be met.”
The Colorado Real Estate world looks at those dependent circumstances typically as property. Example: you have a house that has to sell before you can purchase a new home. Your offer could also be contingent on getting a structural engineer out to ensure the homes safety. But normally, when you hear someone has a contingent offer, it means someone has to sell their home before they can purchase another. So is this a good or a bad thing? It completely depends on the situation of the buyer and seller. In these cases individuals need the equity from their first home for down payment or financing reasons. The exact details for the home sale contingencies are found within the purchase contract to protect buyers who want to sell one home before purchasing another. The dates and deadlines for the contingent property selling are also in the contract to purchase real estate to protect the buyer and inform the seller. Because contracts are legally binding, it is important to review and understand the terms of each home sale contingency, as they are all different. A qualified real estate professional or real estate attorney should be consulted with any questions or concerns regarding real estate contracts and home sale contingency clauses.
So, can it be done in Denver? Do you stand a chance? Of course! It’s all about timing, negotiations and navigating the details. To start, you’re going to want to meet with a lender to see if you need to be contingent or if you qualify for a new home without selling your home first. This can give you instant breathing room. If not, don’t panic! Take that information and give it to an educated Realtor (feel free to reach out to me) to discuss your game plan. There can be a multitude of options ranging from; putting your house on the market before looking for a replacement, asking for a post closing occupancy agreement, or moving out prior to listing and living with friends.