Will You Remove Contingencies From Your Offer In A Multiple Offer Scenario Regardless Of Whether The Competing Offers Have Those Very Same Contingencies?


Will You Remove Contingencies From Your Offer In A Multiple Offer Scenario Regardless Of Whether The Competing Offers Have Those Very Same Contingencies?
By Scott Rogers • October 3, 2024
A house comes on the market, and you like it, and it is priced reasonably. You make a full price offer on the house with a home inspection contingency. Then, you get notified that another offer has been received on the house. Since the time that you made the offer, you have decided that you don't just like the house you LOVE it. You don't want to miss out on this one. So, do you remove the home inspection contingency? You don't know whether the other competing offer has an inspection contingency. You also don't know what other contingencies exist in that other offer. You could leave the inspection contingency in place if you are not comfortable buying this home (or any home) without conducting a home inspection. You could remove the inspection contingency to try to make your offer as competitive as possible - though if the other offer also had an inspection contingency, maybe you didn't need to remove it? Or, trying to hit the middle ground in some ways... perhaps you add language to your home inspection contingency to only keep the contingency in place if the competing offer does not have an inspection contingency. Side note on this last strategy... If you offer $400K with an inspection contingency -- and your inspection contingency includes language to only keep it in place if the competing offer does not have an inspection contingency... And if the competing offer was $402K with an inspection contingency... Then you might lose out on the house - because both offers had an inspection contingency and your offer was at a slightly lower price - whereas your offer might have been selected if you had removed your inspection contingency from your offer that was at a slightly lower price than the competing offer. A single best way to navigate this issue - when to include or remove contingencies - does not exist. But, it is important to keep in mind the myriad of contingencies that competing offers may or may not have when you start to modify your offer terms based on a competing offer with unknown terms. Receive Updates by Email Recent Articles: Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer We Will Likely See Fewer New Listings Over The Next Few Months
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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