Are you selling your home in Phoenix, Arizona, or any other part of Maricopa County? You may have heard from buyers who want your house on contingency status if you are.
Request a cash offer today if you want a faster sale and faster cash. In the meantime, learn all about contingencies in this article.
Now, you might be wondering. What does it mean to sell your house on contingency status? More importantly, can you list your house if it’s contingent, and how long can a house be on contingent status?
We’re answering these questions and more. Keep reading to learn more about house buyer contingencies and what it means for you as a seller in Arizona.
A simple way to understand what a contingency is is to imagine it as a safety net for the buyer. Whenever cash buyers look at a property, they’d like to ensure that they’re getting their money’s worth. Hence, they’ll agree to buy homes meeting certain conditions.
These conditions are the real estate contingencies. The sale will not push through until your home meets these conditions or contingencies.
However, if your home meets contingencies set by the cash buyer (like Andrew the Home Buyer), you can look forward to a successful property sale.
For the most part, you can expect your home buyers to set any or all of the following kinds of contingencies:
- Appraisal Contingency – On an appraisal contingency, buyers can purchase your house if its value matches the listing price. To ascertain this, you’ll have to get an appraisal of your home and show it to the cash buyer as proof.
- Inspection Contingency – Buyers want to be sure of your home’s condition. This is why many buyers will also have inspection contingencies in place. An inspection contingency allows buyers to put off the purchase pending the results of a home inspection.
- Loan Contingency – Unless your cash buyer is willing to pay in cash fast like us at Andrew the Home Buyer, your buyer will be financing their purchase on a mortgage or loan. Hence, a buyer might set a loan contingency.
- A loan contingency allows buyers to withdraw from buying the home if they fail to secure financing. This type of contingency prevents them from paying too much money upfront.
- Home Sale Contingency – Home sale contingencies are conditions set not for your home but for the buyers’ ability to sell theirs. On a home sale contingency, buyers will only purchase your home if they’re able to sell theirs within the contingency period.
Isn’t a Pending Status the Same as Contingent Status?
The answer is “no” even if it appears this way on the surface. Pending status means that your sale is successful, and you’re just waiting for the final touches of your house’s sale. Your house remains off the market, and your buyer has already bought your home.
How Long Can Contingencies Last?
In general, contingencies of any kind in Arizona can last anywhere from 30 to 60 days. Of course, the buyer can agree on a shorter or longer period with you.
Can Buyers Make an Offer on a House on Contingent Status?
The answer to this question will depend on the agreement between you and the buyer. While there are contingencies that the buyer can set, you can set some of yours too.
- Contingency No Show – On this contingency status, you can make the home available on the last day of the contingency agreement. While this is in effect, you will promise not to accept offers or show your home to other prospective buyers.
- Contingency with Kick-Out Clause – A kick-out clause allows you to continue showing your home even if the buyer has your house on contingency status. You will be able to show your house, but you can also accept offers if they are better than the current buyer’s rate.
- Contingency Continue to Show – You’ll be able to continue showing your house to other interested buyers. However, you and your buyer still have a deadline for the sale. Only after the deadline has passed can you accept offers for your home.
Buying and Selling Homes Without Contingencies
Buyers and sellers use contingencies to mitigate risks. Of course, for sellers, contingencies can mean lost time and opportunities to sell your home.
Of course, some sellers will sell homes without contingencies to attract hasty buyers. Some buyers will also take contingencies off the table if they want to move in immediately. However, these sellers and buyers are few and far between.
For the most part, you as a seller will encounter buyers who want contingencies in place.
Reach Out Now and Get a Quick Cash Offer
Selling a house on contingency status requires you to make repairs, get an appraisal, and wait for things to improve on your buyer’s end. Not only can the sale take time. It can fail, especially if your home is damaged.