Colorado Springs Real Estate | Colorado Springs Homes for Sale
  • Home
  • Advanced Search
  • Military Relocation
  • Selling
  • What's My Home Worth?
  • Blog
Login
(719) 660-1116

Sign in to your account

Need to reset your phone number?

Don't have an account with us?

Click here to sign up.

Contingencies & Negotiations in Real Estate Contracts

Some buyers make an offer to buy a home before they even list their own home for sale. However, they need to sell their present home in order to come up with the down payment to make the purchase. So they make their offer “conditional” on the successful sale of their own home. That is a “contingency.” Actually, it is a major contingency.

Contingencies are important in real estate contracts because they limit a buyer’s or seller’s responsibility to fulfill the contract and close the deal. Some are major, some are minor. Some contingencies are frowned on — others are not. Other contingencies are “normal.” For example, in a seller’s market most sellers would not accept the contingency listed above. A potential buyer with a home to sell should already have their home listed AND have an accepted offer from a “ready, willing and able” buyer. Other contingencies make perfect sense.

For example, a buyer might want to make their purchase “contingent” upon their ability to obtain financing. If they can’t get the loan, they can’t buy the house anyway, so it is a contingency that makes sense. Another buyer may want to make his offer contingent on the home appraising at (or above) the purchase price. Since the appraiser is hired by the lender and is independent of the actual transaction, that is another contingency that makes sense. In addition, there are loads of inspections. Buyers will often want to make sure the property passes these inspections, so these become additional contingencies… …and that is what makes a real estate contract different than most contracts. Most contracts are set at the time of offer and acceptance. They are a “done deal” and both parties are liable to fulfill their obligations no matter what. If either party attempts to renegotiate any point, the other party can “void” the original offer and acceptance.

Real estate contracts have specific clauses which allow renegotiation in limited areas. For example, a real estate contract may require a buyer to get his home inspection completed in fourteen days. It allows the buyer three days (or whatever) to review the inspection and report any problems to the seller. If no problems are reported, that contingency automatically disappears. Suppose the inspection is performed within the required time frame, it shows a cracked tile in the corner by the fireplace, and the buyer reports that problem to the seller. What happens next? The buyer and seller renegotiate that aspect of the deal. It’s a legal contingency. It is subject to renegotiation. The seller may decide to replace the tile — or he may decide not to replace the tile. The buyer decides whether it is worth losing the house over a broken tile or not. The seller decides whether it is worth losing a buyer over a small thing like a broken tile. That example was purposely minor. The problem could be a faulty roof. That would require more serious thought.

Contingencies are a part of real estate contracts and so are renegotiations — but only in limited areas and according to the contract. Some buyers and sellers never fully read the contract — be sure to read yours.

Like or Share
Loading likes...

Address Search

Seller Resources

  • 10 Biggest Selling Myths
  • 10 Signs it’s Time to Sell
  • Black Mold Basics
  • Closing Costs
  • Comparable Sales
  • Contingencies/Negotiations
  • Curb Appeal Checklist
  • Getting the Highest Price
  • Getting Ready to Sell
  • Home Appreciation
  • Home Inspections
  • Is Your Price Too High?
  • Make Your Move Easier
  • Market Snapshot
  • Real Estate FAQs
  • Short Sale
  • Should I Sell By Owner?
  • The Selling Process

Buyer Resources

  • Ask Your REALTOR®
  • Applying for a Loan
  • Bi-Weekly Mortgage
  • Buyer’s Agent
  • Buying versus Renting
  • Closing Costs
  • Closing the Deal
  • Contract of Sale
  • Correcting Your Credit
  • Environmental Issues
  • Find the Perfect House
  • First Time Homebuyers
  • Get Pre-Qualified
  • Home Inspections
  • How Much Can I Afford?
  • Make Your Move Easier
  • Making an Offer
  • Market Snapshot
  • Mortgage Savings Tips
  • Real Estate FAQs
  • Short Sale
  • Top 10 Signs to Own
  • Types of Lenders
  • What is Escrow?
  • Who to Work With

Military Bases in Colorado Springs

  • Fort Carson
  • Cheyenne Mountain AFS
  • Peterson AFB
  • Schriever AFB
  • US Air Force Academy

Real Estate Market Reports

  • Colorado Springs Market Report
  • Fountain Market Report
  • Monument Market Report
  • Peyton Market Report
  • Woodland Park Market Report

Buying & Selling Made Easy

 Freshest Data Available
 Active Listings Only
 Customizable Search Options
 New Listing Alerts
 Instant Home Value Assessments

Bob De Young

Connect With Us

Translate Site

  • Home
  • Advanced Search
  • Military Relocation
  • Buying
  • Featured Properties
  • Coming Soon
  • Foreclosures
  • Selling
  • What's My Home Worth?
  • Recently Sold Listings
  • Market Reports
  • Meet the Team
  • Blog
  • Contact Us

 

Bob DeYoung & Associates, Inc
Harmony Real Estate Group
(719) 660-1116
bob@thankavet.com

 
 
 

© 2021 All Rights Reserved | Privacy Policy

3220 N. Academy Blvd, Suite 1
Colorado Springs, CO 80917

Advanced Searches

  • Condo Search
  • MLS # Search
  • Sold Search
  • Address Search
  • Foreclosure Search
IDX Real Estate Websites by
• Accessibility • Terms • Privacy