what is selling your house on contingency?
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Selling your house on contingencies means you have conditions. The most common condition is that you want your old house to sell or close prior to agreeing to purchasing the new one.
Conditions can be almost anything you want them to be as long as both parties agree to it in writing.
A contingency is a subsequent event that could allow the buyer to break the contract, with no or specifically outlined consequence.
Almost all home purchases will have an inspection contingency, where a prospective buyer gets to bring in a professional to look at the overall condition and assess what repairs are needed and at what cost. At this point, a buyer might back out or ask the seller to make repairs or credit them the cost of the repairs.
There may be contingencies where a buyer has to sell their old home first, since they wouldn’t be able to carry two mortgages at one. Another common one is the buyer being able to get approved for a mortgage.
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