Desiree Renshaw

Home Sale Contingency – Do I Have To?

Navigating the intricacies of real estate transactions, buyers often mistakenly believe they must sell their existing home prior to purchasing a new one, leading to the inclusion of a home sale contingency in their offers. Although this is sometimes a necessary safeguard, it also has the potential to weaken the appeal of an offer (especially in the event of a bidding war).

Meet With a Lender + Weigh Your Options

Buyers should engage in detailed discussions with experienced lenders to assess whether such a contingency is necessary in their particular situation. If there are other sources of down payment funds that can be used – such as savings, retirement accounts, or gifts – these might be good options to explore. The option of a mortgage recast might also be available, presenting a strategic alternative to selling a current property before buying a new one. This financial maneuver allows buyers to make a significant principal payment and have the loan recalculated, which could lead to more favorable terms without relying on the sale of their existing property.

We collaborate with lending professionals to provide our clients with alternatives to home sale contingencies.

This is particularly important in a competitive market, where multiple offers are the norm and non-contingent offers are almost always favored. But even in less aggressive markets, the absence of a contingency can make your offer more appealing. Prior to crafting an offer, the collaboration between realtor and seasoned lender is crucial to ensure that the buyer fully understands their position and their options.

A Win-Win

For sellers, a clear understanding of this addendum is also critical. Each contingency bypassed solidifies the pathway to closing, making the transaction less complex and more certain. 

With benefits to both the buyer and seller, buyer-collaboration with realtors and lenders who are well-versed in all creative solutions seems like a no brainer. These professionals can help you navigate through various scenarios to ensure you’re protected while making the most attractive possible offer!

Interested in more real estate insights or considering a transaction in Spokane? Reach out to The Renshaw Group for personalized advice and professional support. Let’s turn your real estate goals into reality, together.

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