What is a Home Sale contingency? Can I still See the House?
Very well written blog by Connie Harvey explaining the term "Home Sale Contingency". Hope home buyers in Prince George's County Maryland and DC find this blog helpful.
What is a Home Sale contingency? Can I still See the House
?
When there is a contingency on any property, it means that there is a legal and binding contract on the property but there remains something that the Buyer still needs to do to complete the sale. It means that the Buyers and the Sellers have reached an agreement on price and terms, but this last item must also be completed.
Contingencies can be the Home Inspection, Financing, Appraisal or, as in this case, the Buyer must sell their home in order to purchase the house.
In a Home Sale Contingency, the property can remain on the market with the Buyer having first right of Refusal. This is negotiated at the time of the offer. The Seller will offer to give the Buyer 24, 48 or 72 hours to either release the house or remove ALL contingencies. Sometimes they also request more earnest monies from the Buyers. Then, if for some reason the Buyers don't close for any reason, they lose all their earnest money.
So the house stays on the market and another Buyer can come in and write an offer on
the property. The Sellers can negotiate the price and terms and the result is contingent upon the first Buyers releasing the Sellers from their contract.
So to answer your second question, the answer is Yes, you can see the property. And if you like it, we can write an offer on it. Even if we agree on Price and terms, it doesn't mean you will get it. It depends on the First Buyer's ability to remove all their contingencies.
Connie Harveyis a local agent with Prudential Woodmont Realty, serving home buyers and sellers in Nashville, TN, Brentwood TN, and Franklin TN. Let her help you realize your Real Estate goals. She can be reached at 888-798-7800 x 1300.
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