Let's Ask Katie - September 2024

Let’s Ask Katie

Expert Advice for all your Real Estate questions from Katie Machoskie

Dear Katie,

We’re thinking of buying an income property and I’ve heard that it’s still competitive.  If we write a full price offer that is non-contingent, do we have a good chance at beating the competition.  I’ve heard bidding against investors and flippers is tough. 

Mary S, Newport Beach

Hi Mary, 

With inventory still low, it’s important to write the most appealing offer possible and working with an experienced agent to advise and guide you is one of the best ways to get a jump on the competition.  

A non-contingent offer to buy a house is a powerful tool in the real estate market that can give buyers a competitive edge. When making a non-contingent offer, the buyer is essentially saying, "I will buy your home, no matter what."

In a traditional home purchase, the offer is often contingent on certain conditions being met. These conditions could include the buyer securing financing, the home passing physical inspections regarding its condition, or the appraisal coming in at a certain value. If any of these conditions are not met, the buyer has the option to back out of the deal without any penalty, as long as the buyer cancels during the Buyer Investigation contingency period as agreed in the purchase agreement by the buyer and seller.

On the other hand, a non-contingent offer means that the buyer is willing to purchase the home without these conditions. This type of offer can be attractive to sellers because it minimizes the risk of the deal falling through. However, it's important for buyers to fully understand the implications of making a non-contingent offer. They should be confident in their ability to secure financing and comfortable with the condition of the home, as they will be obligated to proceed with the purchase regardless of what they discover.

In a competitive real estate market, where multiple offers are common, a non-contingent offer can set a buyer apart from the competition. It signals to the seller that the buyer is serious and committed to the purchase, which can be a compelling factor in the seller's decision-making process. However, it’s extremely risky as the buyer can not back out if they discover something concerning the property or run into financing difficulties. As always, remember Buyer Beware and work with an experienced agent who puts your interests above all others!