When you receive an Offer To Purchase, you are likely to focus on the price. You might be ecstatic over a close to full price offer, but you should be aware how “contingencies” could affect the likelihood of your successful sale.
Almost every offer has a mortgage contingency, stating that the buyer will be able to secure financing for a specific loan. Make sure these factors are realistic. A buyer seeking a 30-year loan at 3.25 percent interest with no points maybe hedging their bets if your agent advises you that these loans are typically written at 4.25 percent interest and 2 points. Unrealistic terms can allow the buyer to back out if they get cold feet.
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’s wise to respond with a “kick-out” clause that allows you to keep your home on the market while the buyers try to find a buyer for their home, offering them a 24 hour period to release their contingency if you decide to accept an offer from another buyer.
Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.