Real estate agents often talk about the value of a clean purchase contract. A clean purchase contract or clean offer is simple and straightforward. It is not complicated by lots of contingencies, conditions and restrictions. A contingency in a real estate purchase is something that must be satisfied in order for the sale to go through. Contracts need some contingencies, as they protect both buyers and sellers. Being able to write a clean offer may give you an advantage when negotiating with the sellers. This is particularly the case if you find yourself competing with other buyers for a property. Put yourself in the seller’s shoes, the fewer strings attached to an offer, the better the chance it has of closing. Some contingencies cannot be avoided. For example, a property that’s being sold to settle an estate might require court approval of the sale. Another example is when the buyers need to sell their existing property to purchase the new one. While some contingencies cannot be avoided, the agents experience, skilled negotiation and knowledge will improve the chances of a successful sale. Other common contingencies are for financing and inspections. FYI: Although a clean offer may give you a competitive edge, never delete all contingencies from your offer. For example, if you need a mortgage in order to buy, you will need a financing contingency. If you write your offer without a financing contingency, you will risk losing your deposit money if you can’t get a loan. Be prepared and get preapproved before submitting an offer. Always make sure you have an inspection contingency. To make your offer more attractive, you may shorten the time period for your inspection contingency. It is advisable to have a licensed inspector go out to the property to inform you of the property condition before you buy it. Less common contingencies are sometimes more difficult to satisfy. For example, a seller may need to stay and occupy the property for a period of time after it closes and title transfers. Skilled negotiation and experience will help clarify, the terms and conditions for a successful closing. Given the emotional nature of home buying and selling, many buyers and sellers prefer the cleanest contracts possible. If you would like more information, visit our website at www.bettisrealtygroup.com or attend our upcoming First Time Home Buyers seminar on February 8th 2011. Get in where you fit in! |
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