Dawn Griffin December 7, 2020
What does Contingent With Kickout mean? It means that the home is still available for viewing and buying.
Typically this means the seller of the home has accepted a contract from a buyer who also has a home to sell. The offer that the buyer submitted has a “Kick-Out” clause in it. This means that the seller has an opportunity to accept a different offer from a buyer and “kick-out” the first contract.
For sellers, a kick-out clause can be an acceptable arrangement because, although they have signed a contract, they remain able to keep the house on the market. They still have the right to show it to other potential purchasers and potentially accept backup offers.
If the seller receives a better offer—without contingencies or a cash offer, for example—they can “kick out” the original buyer unless both sides come to a new agreement, usually within 72 hours. The original buyer may choose to waive the outstanding contingencies to keep the deal alive or walk away altogether.
In competitive markets, sellers may not even consider home-sale contingency offers. As a buyer, one way to try and avoid a kick out clause is to make an offer without the home-sale contingency. Submitting an offer completely free of contingencies—waiving your right to inspections or to secure financing, for example—is another option to make your proposal more attractive in general, but that comes with additional risks.
We can help buyers and sellers understand the pros and cons of contingent offers and help you navigate offers. Let us know if you have questions.
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