Have you been considering the option of putting your house up for sale to start a new life in a new city or state or to downgrade or upgrade your living conditions? If you have, now is as good of a time as any to sell your home, as the U.S. housing forecast is predicting strong years ahead for the housing market well from 2017 to 2020 and beyond. An experienced realtor can determine the market value of your property, and also stage and market your home to potential buyers. When accepting offers, verify that the contract you sign include the following 3 contingencies and clauses, so that you protect yourself financially. A realtor can help you better understand the contingencies and clauses if you have any questions.
Avoid Delays from the Buyer with Kick-Out Clauses
Even after accepting an offer, it can take a while for the entire transaction to be finalized. The buyers will want to get the home inspected and might need time to apply for a mortgage or to sell their current home. With that said, these things can take time, and you definitely don't want to be left hanging in the meanwhile.
Protect yourself by ensuring that the contract has a kick-out clause. This basically allows you to terminate your agreement with the buyers should they fail to fulfill several duties. For example, the kick-out clause might require the buyers to put their house up for sale within a certain amount of time or might require that they apply for a mortgage before a certain date.
In the event that the buyers fail to complete the duties outlined in the kick-out clause, you can easily terminate your contract with them if you want without any penalty. You can then accept any other offers that might have been made by other buyers..
Allow Yourself More Room to Negotiate with Clauses Allowing You to Accept Bids Even After Accepting One
As mentioned above, you never know if any issues might arise after an offer has been accepted. To ensure that you don't miss out on a better offer, sign off on contracts that allow you to continue to market your home and accept bids even after you have accepted an offer with a potential buyer.
The contract might specify that you are responsible for letting subsequent buyers know that you already have an offer standing, and will only accept their offer should the current bid expire. You also need to let the current buyers know that you will be still accepting offers until they are able to finalize the sale.
It's a good idea to continue to market your home until the sale is fully finalized. If you take your property off of the market, it might be difficult for you to get it back on the market and generate interest for it again in the future.
Protect Yourself with Contingencies on Your Ability to Purchase a Replacement Home
If you haven't already found a replacement home to move into, you definitely don't want to be forced out of your current home, as you won't have anywhere else to stay. To protect yourself in the event that you can't find a replacement home, include a contingency in the contract that basically states that you are able to terminate the sale should you be unable to find a suitable replacement home within a certain amount of time. Keep in mind that the buyers will want to check to confirm whether you have been actively looking at listings.
You'll need to discuss a fair timeline with the buyers. If you fail to meet the timeline, the buyers can either request that you terminate the contract with them and return their deposit or they can decide if they want to give you an extension.
Real estate services will help you not only sell your home, but also confirm that the contract contains contingencies and clauses that protect your best interest. They'll help you work through the entire process, so that you can relax during this stressful period of time in your life.