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Contingent Offers

J. Andrew English J. Andrew English

As a follow up to our most recent blog entry, I wanted to follow up on what we are seeing the last few weeks. The # of cancelled escrows is skyrocketing. This should lead a seller to think twice about accepting a contingent offer at this very moment. First, let’s define a contingent offer. A contingent offer is an offer that is contingent upon the buyer’s own property selling before they can close on your property. With the # of deals falling apart increasing, with a contingent offer, as a seller you are not just relying upon your own buyer to perform, but  you are also waiting on your buyer’s buyer to perform. In today’s market, that means 2 appraisals, 2 loans, 2 inspections, 2 sets of buyer’s retaining employment.. etc… etc… Historically, contingent offers are risky, however, in today’s market the risk is exponentially higher. The market is always changing and sellers should pay careful attention to the current marketplace before considering any offer.

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