Buying a piece of property is a complicated endeavor. And sometimes you have to move fast and with conviction if you want to secure the real estate in question. This is why some buyers choose to make non-contingent offers. But is doing so in your best interests?
The benefits of a non-contingent offer
A non-contingent offer can signal to a seller that you’re serious about purchasing the listed property. Given that you’re willing to forego the protections provided in a contingent offer, a seller may be more likely to accept your non-contingent offer over others. This can increase the likelihood that you’ll secure the property and do so more quickly.
Non-contingent offers can be dangerous
Although there can be some advantages to a non-contingent offer, they can also be extremely risky. To start, with one of these offers you choose to forego several protections. For example, you’ll likely forego an inspection that may uncover issues with the property that are costly to resolve and that you otherwise could have the seller remedy before finalizing the transaction. You’d also give up the ability to back out of the deal if your mortgage application is denied or you’re otherwise unable to secure financing, which can happen even if you’ve been pre-approved for a loan.
Any of these issues can result in you losing your earnest money, which can be a significant chunk of change. Depending on the aggressiveness of the seller, you could also face additional legal action if you need to back out of the deal.
Protect your interests throughout the real estate transaction process
There’s certainly a lot at stake when pursuing a real estate transaction process. You have to navigate it with care and an understanding of the law. If you want to learn more about how to protect yourself throughout the transaction process, or if you want to more strongly determine whether a non-contingent offer is right in your situation, then please continue to read our blog and seek out any assistance that you may need along the way.