Should you write a squeaky clean offer?

bubble-house.png

In a seller's market, should you write a squeaky clean offer?

A clean offer means that it has few contingencies, which are certain conditions that must be met in order for the sale to go through. Typical home purchase contract contingencies include financing, inspections and the sale of another home.

You can place your offer ahead of others by limiting as many conditions as possible before presentation, however, do not risk running into important and expensive things that can crop up on the other side of closing.

While real estate deals across the U.S. can include contingencies, California is a state where you need to complete a contingency removal form in order to lift the contingency restraints so that the sale can move forward and close. The form, revised in December 2020, lists the standard buyer contingencies:

  • Loan

  • Appraisal

  • Buyers Investigation Contingency (physical inspection, buyer's investigation, or both)

  • Condominium/Planned Development (HOA/OA) Disclosures

  • Reports/Disclosures

  • Title: Preliminary Report

  • Sale of Buyer's Property (entering into contract or close of escrow)

  • Review of documentation for leased or liened items

...and you can add more.

In California, if you do not remove your contingencies in writing, they may still be in effect, all the way to closing! Buyer contingencies may ONLY be removed in writing. We will make sure that you only remove your contingencies when you feel comfortable and ready to do so.

With each additional contingency, sellers may assume that you aren’t serious about buying the home. The last thing a seller wants to do is take a chance on you backing out of the sale. Many sellers would rather take a chance and wait for the right offer.

If you are serious about buying a home, consider cleaning up your offer. If you can’t make the offer completely clean, limit your contingencies. This gives the seller reassurance that you are going to buy the home in the end.

With us getting used to constantly cleaning everything in sight, everything we touch, we could get ahead of ourselves in cleaning contingencies from a contract, but keep in mind that with fewer contingencies comes greater risk.

If you need any advice on buying your new home, don't hesitate to contact us!

Business, BuyingCecilie Korst/