{"id":1719,"date":"2017-02-21T11:58:14","date_gmt":"2017-02-21T16:58:14","guid":{"rendered":"https:\/\/www.sunbeltnetwork.com\/dayton-oh\/?p=1719"},"modified":"2022-08-04T20:36:58","modified_gmt":"2022-08-04T20:36:58","slug":"making-contingent-offer","status":"publish","type":"post","link":"https:\/\/www.sunbeltnetwork.com\/dayton-oh\/making-contingent-offer\/","title":{"rendered":"Making a Contingent Offer"},"content":{"rendered":"

What is a contingent offer?\u00a0 An offer based on the information provided by the seller, and or, broker, prior to having performed due diligence.\u00a0 The contingencies protect a buyer and allow the buyer to make an offer early in the acquisition process.<\/p>\n

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Why use a contingent offer?\u00a0 Contingent offers are a way to negotiate a purchase price and deal terms without having to invest the time and expense of due diligence.\u00a0 If a buyer and seller can\u2019t come to agreement on price and terms, it doesn\u2019t make sense to move forward.<\/p>\n

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We find too often that potential buyers want to move in many directions once they\u2019ve discovered an opportunity that interests them.\u00a0 \u201cLet me talk to the landlord\u201d, \u201cI\u2019m scheduling meetings with lenders\u201d, \u201cI\u2019ve engaged an accountant to begin due diligence\u201d, and the list goes on.\u00a0 Of course a buyer should get excited and want to get things moving, but moving towards what end?\u00a0 Until a deal is in place, it\u2019s just spinning wheels.\u00a0 For example, a lender can\u2019t provide a loan package until they know the agreed upon price, down payment and whether there\u2019s a seller note involved \u2013 at this point they don\u2019t even know the amount of a loan needed.<\/p>\n

On the other side of the deal, the seller doesn\u2019t know if this is a \u201creal buyer\u201d or not.\u00a0 Until an offer is made, everyone is just a prospect.\u00a0 Until they have an accepted offer, they don\u2019t want to expend much time, energy and money.<\/p>\n

This is where a contingent offer comes in.\u00a0 A buyer can negotiate with the seller, with little or no risk, to find a deal that works for both parties.\u00a0 Once this step has been accomplished, everyone now has a goal to focus on and both parties are ready to push towards the finish line.<\/p>\n

Typical contingencies include:<\/p>\n