Dealing with contingencies is extremely important when selling a home. The key is to recognize trouble before it surfaces.

For example, buyers will often make offers that are contingent on the sale of their home, which is fine. However, be sure to do some homework on the likelihood of them having a successful sale by looking at the current days on market, comparable sales, and loan amount owed on the property.

What about your buyer’s buyer? If the home is already in contract, what type of financing are they using? How much down payment? Which contingencies have and haven’t been satisfied? If it is a 100 year-old house, it may have issues with the inspection. If the neighborhood is littered with foreclosures, there may be an appraisal issue.

Be sure to leave yourself some extra time just in case the closing gets delayed. There is nothing worse than having the moving trucks packed up and taking off work only to find out at the last minute that the transaction won’t be closing on time. Be sure you understand as a seller you cannot eliminate risk, but you can take preemptive steps to minimize it in addition to damage should a disaster occur.

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