When you receive an Offer to Purchase your home or property, most people are likely to focus on the price alone. With a full price offer, you might be ecstatic enough that you don’t read the ‘fine print’, the contingencies, and how these can affect the likelihood of a successful sale.
As an example, most offers have a mortgage contingency, stating that the buyer will secure financing at a certain rate and for a certain term. These factors have to be realistic. A buyer seeking a 30-year loan at 4% with no points may be hedging their bets. Your real estate agent should know what the current terms are for financing and can advise you. Unrealistic terms can allow the buyer to back out if they get cold feet or find another property they prefer.
Another sticky contingency more common these days is when a buyer states that they must sell their home before they can finalize the purchase of yours. There has to be a realistic time limit, so the buyer doesn't tie up your listing.
It may be wise to respond with a "kick-out" clause that allows you to keep your home on the market while the buyers promote theirs, offering them a 72-hour period to fulfill the contract if you should receive another offer in the interim.
Other issues are inspection periods and seller concessions.
These examples are just the tip of the iceberg, so sit and discuss each line of the offer with your agent before making your decision.
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