A: Contingencies in the contract present opportunities to negotiate after an offer is accepted, so to avoid this, sellers prefer contingent-free offers and quick closings. We often advise our sellers to provide inspection reports to better inform buyers and instill confidence to write their offer with no contingencies.
Opportunities to renegotiate also arise if new material information comes to light during the escrow period. This could come from a number of occurrences, including the discovery of a leak during a rainstorm, an appraisal below the contract price, new findings during an inspection, or a new lien on the property during a title search.
Rarely do these renegotiations cause the contract to be terminated, but they can result in a closing delay, price reduction, or credit from one party to another. To avoid pitfalls or take advantage of opportunities when issues arise, work with an expert who thoroughly understands the contract and is advocating for you.
Maitri Ratanasene, Compass, 415-215-5505, [email protected].
