What Are Contingencies On A Charlotte, NC. Offer To Purchase?

This question of what are contingencies in a Charlotte, NC offer to purchase on the surface seems like a simple one to answer. Most people will say does it really matter; they are paying X and that is what matters. Well the answer is not always that easy. When an offer is submitted on a Charlotte, NC. home there are other variables that the seller needs to consider besides the price. What contingencies are the buyers asking for? By this I mean is this offer subject to the buyer selling their home first in a certain time frame? Is it subject to them acquiring financing for the house? Is it based on a move date to the area? Seller help with closing cost contingency? Each of those items can impact the quality of the offer. Some buyers have another house to sell. Generally they will be under contract on their existing house when they put an offer in on yours. But what happens if that buyer for their house all of sudden backs out or cannot get financing? Your home sale was contingent on them selling and closing on their home. Now what do you do? You have just lost valuable time in the sale process and need to start all over again. Financing contingencies are very common unless someone is paying cash for the house. But, what type of loan are they trying to get? Is it an FHA loan? VA Loan? Conventional Loan? The type of loan they are looking to get based on the price they offer can impact the deal. The VA and FHA have an addendum that requires the house to appraise for the sale price of the home in order to qualify for the mortgage (or the buyer has to come up with the difference). Is the home on the higher end of the price point for the neighborhood? If so you may be at the mercy of the appraiser and sweat out the appraiser...This also is valuable time potentially lost. Do you have a plan if the house does not appraise? When is the closing date set for your house? is the seller relocating to the area or are you relocating out of the area? Are there dates you need to be out or the seller needs to be in by? Generally most contracts written allow for a 30 to 45 day close period from an agreement to secure the finalization of financing and get all the inspections done. But what if it is shorter? Or longer? How much and does it impact you for moving or selling your house? Is the buyer acquiring financing and needs help to pay the closing costs on the house? Most (in fact all of the FHA and VA loans I have done in the past two years with financing involved) have asked for some dollar amount from the seller in closing cost assistance. This contingency is a large one and can have a large financial impact on the price of the house. There is so much more to consider when you receive an offer on your home in addition to the price of the house. Checking what contingencies the buyer is asking for can have an impact on whether you accept the offer or not. It also plays a part in the negotiating of the house. Always ask your Realtor what are the other contingencies with this offer? Those answers can impact your decision. Dave diCecco Realtor/Broker www.davedicecco.com