When someone is buying a piece of real estate, whether it is a commercial property or residential property, they will usually make an offer that has some contingencies. These contingencies mean that they have to be met or the buyer is allowed to withdraw their offer with no legal penalty.
For instance, one of the most common contingencies that you’ll ever see is that the offer is contingent on the fact that the home passes an inspection. If the inspector shows up and discovers that the property is actually in very poor condition, the buyer doesn’t want to be stuck with an offer that they made when they had been misled to believe that the property was in excellent condition.
In some cases, buyers will decide to make an offer without any contingencies. Why would someone do this?
It can make an offer more attractive to the seller
When the buyer does this, they’re taking a risk. They know that they’re not going to be able to get out of the deal easily, but they believe that it’s worth it because the lack of contingencies is attractive to the seller, who doesn’t really have to worry about the buyer walking away for the deal.
In fact, there are sellers who will take less money from a buyer who doesn’t add in any contingencies. So this may be a way to get an even better deal on a property. It does come with the risk that the property isn’t a good deal and hidden damage is going to be found, but some buyers are willing to take that risk.
It’s important for both buyers and sellers to understand all the ins and outs of the real estate contracts to which they are agreeing.