When you’re selling your Modesto home, there are a lot of different things you need to be prepared for. One of those things are contingency clauses, and they can be a lot of hassle to work with. But what are contingency clauses, and how can they affect selling your home?
Defining A Term
Contingency clauses are a part of your real estate contract that you draw up with a buyer. If a buyer is also looking to sell their current home, they’ll draw up a contingency with you- the seller- to say that if their house is sold by a certain date, they’re going to buy your house from you. But if their house hasn’t sold by the date specified, the buyer is free to walk away from buying your house.
Risk For The Seller
As a home seller, contingency clauses can be a scary thing, because if the buyer’s house doesn’t sell, neither does yours. Even if the house is still on the market while it’s under a contingency contract, being listed as ‘under contract’ can scare away other buyers in the meanwhile. Make sure to research the buyer’s home before signing a contingency contract with them- if their house is in an area that isn’t selling well, has been on the market for a long time, or is listed at a very high price, that might be a good sign that the contract is going to fall through.
Pros and Cons
While a contingency clause might sound like a bad idea right now, they can also be fantastic for a seller. If your house has been on the market for a long time, a contingency clause can help it get sold, and it can help guarantee that you’ll get rid of the house sooner than you would without a contingency clause.
Not sure you want to take the risk? Rather sell your Modesto home fast? Contact us today to learn how it can be done in as little as 7 days.