Rozansky Group Home Selling Process: Review Offers & Ratify Contract
The Contingencies: What Do They Mean?
Most real estate contracts today contain contingencies; specific actions that must take place within a specified time frame. If the contingency is not met that can potentially void the contract. We don’t like to accept offers with contingencies for extended periods of time, and we’ll advise you accordingly about an acceptable period of time to allow for a home inspection, appraisal and financing contingency.
Our Rozansky Realty Group administrators will track the dates and ensure that the buyer agent and buyers are adhering to the contract and any contingencies that expire.
So What Types of Contingencies Are There?
There are countless contingencies but generally speaking, here are the three most commonly used ones in contracts on the Washington DC real estate market:
- The Financing Contingency. This allows the buyer a limited number of days to apply for a loan and be approved for it. If the buyer is unable to secure the financing in time, they will have the chance to get out of the contract without repercussions. Usually, a contract is stronger if a buyer comes to the table with loan pre-approval.
- Appraisal Contingency. The bank is most likely only going to give a loan that is equal to or less than the appraised value of the house. Thus, as soon as a buyer has been approved for a loan, the bank will order an appraisal on the home. If the home doesn't appraise for the value that the buyer was seeking in the loan, that means that the buyer may need to bring cash to the closing table. If they're unable to do that, they may try to negotiate for a lower price or get out of the contract altogether.
- Inspection. Most Washington DC home buyers understand that there is a lot more to a home than what they see with the naked eye. Thus, they usually order a home inspection to make sure there's nothing structurally faulty about the home. If major problems are discovered, an inspection contingency will allow them to back out of the contract without penalty.
- Chain of Sail Contingency. This essentially means that the buyer must be able to sell their current home first before they will buy your home. Generally a time limit is given so that the home seller is not waiting forever.
- Miscellaneous Contingencies. Here are some additional contingencies that you may want to be aware of when navigating the market as a seller: lead-based paint, HOA rules and regulations, and HOA approval.
Use Washington, D.C. Area Real Estate Specialist Tools To Sell Today
- The Bethesda Neighborhood Sold Report
- Complimentary Home Evaluation
- Request Your Bethesda Home Selling Guide
- Getting Your Bethesda Home Ready To Sell
- Learn About Rozansky Group
How Can We Further Assist You With Selling Your Home?
For further explanation of real estate contract contingencies or any information to sell your Washington, D.C. area property, please contact us directly. Our agents have experience to assist you through the local real estate selling process.
While you're at it, make sure to check out some of these additional resources we offer to sellers just like you: