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All Contingencies Involve Uncertainty. As A Seller You Can Pick Which Uncertainty Worries You The Least.

Decisions!
If you are selling your home and you have a few offers from which to choose, you'll have some decisions to make.

Which contingencies are you most and least comfortable with?

Certainly, ever seller would love to have a cash offer (no financing contingency and thus typically an appraisal contingency), without a home inspection contingency, and certainly without a home sale contingency -- but those offers don't come along that frequently.

So, if you have to pick an offer that has some contingencies, which are you most and least comfortable with?

Nobody's Favorite:
Home Sale Contingency

Only Slight Better:
Home Settlement Contingency (home already under contract)

Comfort Levels Vary:
Inspection Contingency
Financing Contingency
Appraisal Contingency

How a particular seller will feel about an inspection contingency, financing contingency and appraisal contingency will vary from seller to seller, house to house and buyer to buyer.

Some sellers are quite comfortable with an inspection contingency because they have always been proactive with their home's maintenance over the years.

Some sellers are quite comfortable with a financing contingency because the buyer has a significant down payment and/or the buyer is working with a familiar local lender.

Some sellers are quite comfortable with an appraisal contingency because they are confident that there are multiple comparable sales that support the sales price.

Given that offer terms almost always differ between multiple offers, it is important to discuss and decide which contingencies you are most comfortable with as a seller.
 

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