– If you are selling your home, should you accept acontingent offer from a buyer? Well, that's what weare talking about today, and we're gonna getstarted right after this.
(upbeat music) Hello, and welcome back to my channel.
I'm Ledeana Strand with Homes By Strand, powered by Remax town and country in Port Orchard, Washington.
Now, if this is your first time here, consider subscribing to my channel, and hitting that little bell down below to be kept up to date onall things real estate in Kitsap County, Washington.
Now, pro tip, you are gonna wanna stay till the very end of this video, as I will be sharing withyou how to get your free copy of my “Ultimate Home Sellers Guide, ” so you definitely want to stick around.
So you're selling your homeand you get a great offer, full price.
The buyer's not asking youto pay any closing costs or warranty or anything, but they have a contingency.
They have to sell their home first.
So, what does this mean for you and should you accept the offer? Whether you're buying or selling a home, contingencies can help manage the risks involved in a contract.
If you're a buyer and you're addingcontingencies to the offer, they may lower your risk of losing your earnest money deposit should you not be able toperform and close on the home.
But they can also mean that you might not getyour offer accepted.
Now, sellers, on the other hand, are taking on more riskwith most contingencies as it gives the buyers a way to back out of the contractif they don't perform.
So, here in Kitsap County, typically how a buyer contingency on the sale of a home would work, is once the home goes under contract, the seller then can stillcan take backup offers on the home.
Now, if they get a much better offer, they can't just kickthat contingent buyer out and take the second offer.
There's a process that has to happen.
So once that second offer comes in, the seller then notifies the first buyer with the contingency that we have another offer on the home.
Now, that first buyer with the contingency then needs to determine, do I need to cancel and ask for my earnest money deposit back, or is there a way where Ican remove the contingency and still be able toclose escrow on the home? Now, in many cases, that buyer may have to come upwith some creative financing or come up with more money, but in some cases the buyercan qualify for both homes.
But they put the contingency on there just because they didn'twant to have the burden of having two house payments.
Now, if you're a seller and you take an offerfor a buyer contingency, you have to realize that you'retaking on some more risks, and that the first buyer may cancel.
So, if you're a seller and you're looking atpossibly accepting an offer that has a home buyer contingency, you're going to want tolook at contingencies that are further along in the process so that you can lower your risk.
It's gonna be more likely that the buyer's home is going to sell and thus you're going to close on time.
So, a contingency on the sale of a home can be a great tool for buyers and sellers to come together on a contract.
But they do come withrisks and trade offs.
So, if you are a buyerconsidering putting out an offer, or a seller consideringaccepting a contingent offer, it's really important to workclosely with your realtor and talk about the pros and cons and how they affect youbefore you move forward.
I hope that information helps you understand contingencies.
And if you're a buyer or a seller, if you should consider making an offer or accepting an offerthat has a contingency on the sale of the home.
If you have any questions, go ahead and put themin the comments below or reach out to me anytime.
I'm happy to answerany questions you have.
Now, as promised, I am including a linkin the description below for you to download your free copy of my “Ultimate Home Sellers Guide” that will get you totally prepared on the home selling process.
So, don't forget to click that link below to get your free copy.
Don't forget to hit thatsubscribe button as well, and share this video with a friend.
Thank you for watching, and Iwill see you on the next one.
Make it a great homebuying and selling day.
See you soon.