A home sale contingency can be risky for sellers in a competitive market. It can delay the sale, potentially lower the property’s value, and leave the seller vulnerable to the buyer’s inability to sell their current home. In a strong market, sellers may prefer offers without contingencies to avoid these risks.
Here’s a more detailed breakdown:
For Sellers:
Reduced Control:
Sellers lose some control over the sale process, as they rely on the buyer’s ability to sell their existing home.
Potential Delays:
The sale can be significantly delayed if the buyer’s home doesn’t sell within the agreed-upon timeframe, or if the buyer is unable to sell their home at all.
Risk of Price Decreases:
If the market softens during the contingency period, the seller may have to lower the price of their home to attract a buyer.
Lost Opportunities:
Sellers risk losing other potential buyers who are ready to move forward without a home sale contingency.
Increased Stress and Uncertainty:
Sellers face uncertainty and potential stress as they wait for the buyer to sell their home.
Risk of the Sale Falling Through:
If the buyer is unable to sell their home, the sale can fall through entirely, forcing the seller to relist the property.
Potential Legal Issues:
While rare, failure to fulfill the terms of the contingency can lead to legal disputes.
Contact Curtis Knight anytime with questions to do with real estate and he will answer them on his real estate website on the video page. Curtis Knight
Curtis Knight Real Estate LLC
CKRE MA Business Lic # 423406
Office ID: AN5869
Real Estate Broker Licenses:
MA # 9564328
NH # 070879
FL # BK3621825
Cell/Text: 978-590-5910
Curtis@curtisknight.com