Agent

Sellers find it tough accepting contingencies

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

In today's market, few buyers make contingency-free offers. A contingency is an event, like the buyer's loan approval, that must be satisfied in order for the transaction to close. The purchase contract should specify a deadline for contingency removal. The time period is negotiable; it's whatever the buyers and sellers agree to. Sellers usually want as short a contingency period as possible so that they can make plans. Buyers, on the other hand, often want as much time as they can get to inspect the property, line up financing or sell another home. Although sellers prefer short contingencies, it's wise to agree to a realistic timeframe. Buyers who feel under pressure to perform more quickly than seems reasonable can get cold feet and back out. The current credit crisis has extended the time it takes to fully approve a mortgage. Lenders require more documentation from buyers. In some cases, they want copies of W-2s and income tax returns sent directly from the IRS before ...