The offer’s been accepted, the inspections showed no issues, and then… there’s a financing issue.
Because loans take time to secure, the loan contingency is often the last to be removed before a home sale closes. So if there’s an issue, you and your seller don’t find out about it until very late in the deal, sometimes just before closing.
For you and your seller, this last-minute failure can be an emotional gut punch. Even worse, it can bring the momentum of your listing to a grinding halt.
In Orange County, listing fallouts have been no small issue. In fact, a Trulia report found that home sale failures on starter homes in Orange County rose from 6.3% in late 2014 to 12.4% in late 2016. This is at least partly due to a growing influx of first-time buyers with limited credit histories.
So how do you avoid the last-minute financing surprise?
The key is to add certain lender timeline contingencies to the seller’s counteroffer that keep the buyer’s side accountable from the very beginning.
To help you do that, we’ve assembled a quick guide with 3 lender timeline contingencies for you to add to your seller’s counteroffer. These contingencies are easy to add and will help you:
- Ensure a buyer is qualified to close on your listing.
- Discover financing issues early, before time and resources are committed to a failed sale.
- Hold buyers (and their lenders) accountable.