Creating a Smooth Home Closing: Contingency Considerations
Posted on: May 17, 2017 by Signature Insurance Group
In our last post, we discussed some of ways that sellers can ensure the sale of their home goes smoothly. The final 30 days after an offer has been made can be a stressful time where many things can go awry. A major factor for the stress are contingencies on the home, either given by the buyer or seller. Therefore, whether you plan to accept one or give one (or a few), here are some considerations to make. Next, be sure to address your Orange County Home Insurance needs in your new home.
According to Investopedia, a home sale contingency can be risky to sellers because there is no guarantee that the home will sell. Even if the contract allows the seller to continue to market the property and accept offers, the house may be listed “under contract,” making it less attractive to other potential buyers. After all, buyers don’t want to potentially check out a house and fall in love with it when they don’t even have the option to buy it.
If the contingency is something related to repairs, the seller can easily tend to these issues before the closing is complete. These often include pest control, major damage repair, and minor damage repair. However, if the contingency of the home’s sale is reliant on the buyer’s ability to sell their home in time, the seller must consider the following:
- If the home is listed for sale – If the potential buyer wants to purchase your home on a contingency that they sell their own, and it’s not listed for sale yet, this is a red flag. This means they are only in the beginning stages of buying and selling, and not ready to make the commitment.
- The home is listed for the appropriate price – A home priced to sell will get off the market quickly.
- How long the home has been for sale – If the home isn’t budging, it’s likely not priced competitively. Similarly, if the average time for a home sale in the neighborhood is 30 days, and the home has been up for sale for twice or three times that long, it could be a red flag the purchase won’t go through.
About Signature Insurance Group
At Signature Insurance Group we know how important it is to get the best rates and coverage for your assets. Call us today for more information on our Orange County Vacation Home Insurance at (855) 972-9437.