Having financing contingencies can make or break a buyer’s offer.
A lot of sellers have been asking me about the difference between a cash offer and a financed offer. When you’re getting your offers, know that contingencies are a part of them. You might have an inspection contingency, there’s probably an appraisal contingency, and then there’s the financing contingency.
If someone wants to buy your house for $700,000, that’s awesome, but if they have a financing contingency, you don’t know if they’re going to be able to get that loan for the sale to go through until the day of closing. The uncertainty is mitigated by being pre-approved by a good lender.
When you’re getting your offers, know that contingencies are a part of them.
When people talk about getting a cash offer, it means there’s no financial contingency. Either they’re bringing cash to the closing table, or they’re waiving the financing contingency. If two offers are exactly the same but one’s cash and one’s financing, most sellers will pick the cash offer.
If you have any questions about contingencies or real estate in general, please feel free to reach out to me.
