Making an offer without a financing contingency can make your offer more attractive to a seller. However, this choice also carries risks.
What does making an offer without a financing contingency mean?
An offer with a financing contingency allows you to cancel the purchase under specified conditions if you cannot obtain the required mortgage.
Without this contingency, you cannot simply withdraw from the purchase if your mortgage application is declined.
Once the statutory cooling-off period has expired, and no other valid grounds for cancellation apply, this can have significant financial consequences.
Many purchase agreements include a contractual penalty of 10% of the purchase price for a breach attributable to the defaulting party, subject to the terms of the agreement.
Why do sellers find this attractive?
A seller wants certainty that the sale will go through. An offer without a financing contingency can therefore be a significant advantage for the seller.
Sometimes, an offer with more favourable terms can be more attractive than a higher offer involving greater uncertainty.
How can you reduce the risks?
It is advisable to have your financing assessed as early as possible.
This assessment should include your income, financial commitments, available personal funds and mortgage options.
However, a preliminary calculation or estimate is not the same as a final mortgage offer.
What does OZQUR think?
We believe that making an offer without a financing contingency is only responsible when your financial situation has been thoroughly assessed beforehand and the remaining risks are clear.
By combining home buying support with mortgage advice, OZQUR helps clients understand their financial options in advance.
Depending on the applicable terms and acceptance criteria, the NextLevel concept may also offer opportunities to bid with greater certainty.
A financial assessment in advance does not automatically eliminate all risks. The appraised value, the lender’s requirements and any certificate conditions remain important.
At OZQUR Makelaardij, we help you find your dream home in 5 steps
1 – Introduction and valuation
We discuss your goals, view your property and determine a suitable asking price and sales strategy.
2 – Preparing your home for sale
We gather the necessary documents and arrange photography, a property measurement report and the presentation of your home.
3 – Presentation and promotion
We professionally market your home through Funda, our own channels, social media and the OZQUR network.
4 – Viewings and the best deal
We conduct viewings and assess offers.
5 – Sale and handover
We guide you through the purchase agreement, agreed terms, final inspection and key handover, and provide after-sales support.
Curious how quickly your home could sell? Contact OZQUR Makelaardij.
Yucel Samanci
Buying and selling agent at OZQUR Makelaardij, specialising in purchasing strategy, negotiations and guiding Dutch, Turkish and expat clients.
