Agent

What are the risks of a contingency-free offer?

If transaction doesn't close, buyer may lose deposit

2004 has barely begun, and the real estate market is already heating up in some areas. But, where listing inventories are low, some buyers are once again finding themselves in competition with other buyers. A competitive real estate market can lead to risky real estate practices. For instance, contract contingencies, which are designed to protect buyers during the home-purchase process, tend not to be used as often. Buyers simplify their offers to make them more appealing to sellers. In some cases, contingencies are left out of the contract completely. From the seller's standpoint, what could be better than an offer that's contingency-free? Not a thing, if the transaction closes. But before you jump at a contingency-free offer, make sure that you and the buyers understand the consequences of waiving contingencies. For example, some buyers feel confident about making an offer without a financing contingency. This is particularly so if the buyers have been preapproved. A preapproved b...