By REALTORMag
In this red-hot housing market, some sellers may be tempted to add a kick-out clause when countering an offer on their home. This type of contingency in a purchase agreement would allow a seller to continue to market their home even after they’ve accepted an offer. Buyers may want to proactively add this clause to their offer in order to make it more enticing.
Usually, this clause is added if the buyer has a contingency in their offer, such as needing to sell their current house to complete the home purchase. Essentially, a kick-out clause allows the seller to kick out the initial buyer’s offer if a preferable offer comes along.
“Every contract we negotiate where a buyer has to sell a property to purchase a property will have a kick-out clause or a contingency offer,” Ramona Williams, a real estate professional with Keller Williams Partners in Colorado Springs, Colo., told Clever in a recent article.
