What is a Contingency in Real Estate? – Suburban Snack 101
Hello everybody, welcome back to Suburban Snacks. I’m Cade Olof and this month’s snack is HOT TAMALES. Before we review the snack, we will be informing you on what a contingency is in the Real Estate world. A contingency is a clause that buyers include when making an offer on a home that allows them to back out of buying the house if the terms of the clause aren’t met. Without a contingency in place, buyers risk losing their earnest money deposit if they decide not to purchase the home after making an offer.
An example of a contingency in real estate include appraisal, mortgage, title and home inspections contingencies. For instance, if a seller offers a certain price and you, as the buyer, say the price is fine (provided the home inspection comes back clean), you have made a contingent real estate contract. Should you accept a contingent offer?
We recommend you proceed with caution or avoid contingencies altogether. So if you are someone looking to purchase or sell a home in Southern Arizona, then we at Suburban would love to help! Now it’s time for the snack review.
Do you like HOT TAMALES? Let us know in the comments below. That’s going to do it for us here at Suburban Snacks. If you have any questions or would like to get into contact with us feel free to check out our website at suburbanrealestategroup.com. Thanks for watching, my name is Cade Olof and we will see you in the next one.
