What sellers want most: certainty

With fewer homes for sale in most markets, sellers hold sway over eager buyers.

Ironically, that means some sellers aren’t taking the highest-price offer.

“We are seeing the majority of our listings receiving multiple offers, so sellers are usually more inclined to take an offer with little or no contingencies, over higher offers with normal contingencies,” says Matthew Martinez of Diamond Real Estate Group, San Francisco.

These are the four most common contingencies that could derail a transaction:

• a buyer can’t secure financing

• a home inspection doesn’t reveal problems

• an appraisal value comes in at or lower than the contract price

• a buyer sells his own home before closing/ may be eliminated or diluted to please sellers.

Here, agents explain how things can fall apart: Financing: Most buyers need a mortgage, so this one is still common. But “some sellers are requesting that the earnest money become nonrefundable and released to the seller after 15 days,” explains Paul Welden of Homesmart in Phoenix.

“This forces the buyer to ensure they are well qualified by the lender.”

Seller’s agents also talk to the buyer’s lender to determine whether the loan will likely be granted.

Appraisal: This contingency crated 13 percent of sales, according to a recent survey from the National Association of Realtors. With prices rising quickly, appraised values can be lower than the price paid. Buyers are sometimes offering to cover any shortfall, up to a limit.

Inspection: It’s now more common to ask for an inspection before making an offer, instead of the usual practice of scheduling the inspection later and stipulating that issues uncovered that can’t be resolved will negate the contract, notes Kate Ziegler of Arborview Realty in Boston. This approach eliminates a buyer’s worry that he can be saddled with expensive repairs while also ensuring sellers that the buyers have no concerns.

Home sale: This contingency is often not accepted because it’s too risky, except in cases where the buyer’s home is under contract.