One of the most common things that happens in Real Estate is when a buyer or a seller wants to buy or sell a home but their offer is contingent upon something.
In today’s article we will cover some of the common contingencies in Real Estate and what you need to know about them if you’re trying to buy or sell a home.
When it comes to buying a home a typical contingency that buyers will have is their offer on a home will be contingent on them selling their current house.
This type of contingency happens regularly because most people don’t want to sell their homes then start looking for another house because, they will have to live somewhere, and since it can take up to 60 days or longer to buy a home (depending on the market) it makes sense for a buyer to have this type of contingency.
Another common contingency most buyers will have is an inspection contingency, with this type of contingency the buyer has the right to ask for problems with the home to be fixed, or they can always back out of the sale.
Sellers can also have their own contingencies as well but the most common is a home replacement contingency where the seller specifies in the contract that selling their home is contingent upon them finding a suitable replacement home.
With this type of contingency buyers should consider renting back the home to the seller just so they don’t feel pressured about finding a new home once they sell their old one.
Ultimately the key to success with contingencies is for both buyers and sellers to use clear language in their Real Estate contracts including specifying a specific period of time for when ether party should have fulfilled the contingency.
To learn more about contingencies, or to view Southern California homes for sale, contact Fred Sed Realty today by calling us at (800) 322-4643.