Do you know the difference between a contingent offer and a non-contingent offer? In this episode of Highest Or Best, I’m going to show you how contingent and non-contingent offers affect the process of buying a new home. I’ll explain the specifics of each and show you how to get your offer accepted over the competition.
Contingent VS Non-Contingent
In today’s tough market for buyers, contingencies are more relevant than ever. Buying contingent means that to purchase a home, you need to sell your current one first. This usually happens when a buyer needs the funds from the sale of their current home to put towards the purchase of a new one.
This is fairly common, as most of us don’t always have the financial liquidity to have a downpayment readily available in our bank accounts. However, it’s important to remember that, since the real estate market is so hot, most homes are going under contract with multiple offers. So if you’re needing to submit a contingent offer on a home right now, there’s a good chance there will be other offers alongside yours that aren’t contingent.
Non-contingent means that the other buyers don’t need to wait to sell another home to purchase a new one. They’re ready to go now. Non-contingent offers are usually much more attractive to sellers since that can often mean a simpler and smoother closing process.
Getting Your Offer Accepted
Unless you’re planning to offer the highest bid on a home, there’s a good chance your contingent offer will be rejected for a non-contingent one. But if you’re looking to buy a home with a contingent offer right now, don’t give up. I have several things that I suggest my buying clients do to make their offer stand out amongst the competition, giving them a better chance for success when purchasing.
So if you’re thinking about taking advantage of the historically low-interest rate environment we’re in right now and you want to learn more about how I can help you write a winning offer on a home, make sure to shoot me a message and let’s chat. You can also subscribe to my channel so you never miss an episode of Highest Or Best, the one show that shows you how to maximize your Los Angeles real estate assets when it’s time to sell.