Prepare a Contingent Contract when Selling Your Home

If you are selling your home, you will need to explore every option that you have. If you cannot sell your house quickly, you might want to consider an offer of a contingent contract. A contingent contract is a real estate contract that will be enforced as long as a certain contingency is met. As long as this contingency is met, you should be able to close on the house as normal. This type of contract typically works in favor of the buyer because it allows them to make an offer on a house as long as certain conditions are met.

Waiting on a Sale

One of the most common types of contingent contracts involves waiting on another individual to sell their house. In this type of scenario, a buyer is going to come to you and make an offer on your house. The only problem is that you are going to have to wait on the buyers house to sell before you can close on your sale. In this situation, you are going to write up a contingent contract with a specific sales price and everything else as normal. Then, the buyer is going to continue trying to sell their home.

Once the house is sold, they will immediately facilitate the process of buying your house. If you are the seller, this type of deal can be frustrating. While it does provide you with a way to secure a buyer in the future, you really do not know how long this process can take. The buyer's house could sit on the market for months or years. During this time period, you are basically going to be living your life on hold, waiting for someone else's house to sell.

Other Contingencies

There are also several other contingencies that could be included in this type of contract. For example, a buyer might agree to purchase a property if the house passes inspection or if it appraises for a certain amount. They might also agree to purchase if they can find the financing that they want. Usually, these types of contingencies are reduced to a specific amount of time.  For example, appraisal contingencies are commonly 7 to 10 days.

Value

When you are considering doing a contingent contract, you have to think about your own situation. Depending on how quickly you need to sell, this type of contract may not be as valuable to you. You will need to approach the value a little differently because there are contingencies to the sale. Contingencies tend to reduce the value of any contract.

How it is Created

In order to create this contract, you will need to refer to your real estate agent. The basic elements of the contract are going to be the same, except you are going to include a contingency clause in the agreement. You need to make sure that you contingency is clearly spelled out in the contract and that both parties sign it.

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