From the seller’s perspective, each new contingency weakens an offer. While contingencies provide important safeguards, buyers should bear in mind that including numerous contingencies makes it less likely that their offer will be accepted, especially in a competitive bidding situation.
Designated managing brokers must train new licensees to juggle the buyer’s needs and the assigned licensee’s own duty to the buyer with the knowledge that if the buyer makes too many demands or attaches too many contingencies to the offer, the seller is more likely to reject it. Agents must protect their own clients’ interests first and foremost, which means attaching enough contingencies to the offer so that the buyer has plenty of options if things go wrong.
New licensees must also be trained to advise buyers to act in good faith in how they use contingencies or they may lose their right to receive an earnest money refund in the event of termination. For example, sometimes buyers use the inspection to renegotiate the sales price, offering one price but intending to ask for a reduction during the inspection period. Doing so isn’t acting in good faith.”
