As the inventory of for-sale homes
remains at low levels, sellers are getting more comfortable at the
bargaining table and telling buyers to cool it with the contingencies.
In competitive situations that attract multiple bids, some sellers are
even telling buyers they want an offer without mortgage contingencies. (editor's note: This includes appraisal contingencies. Financing and appraisal contingencies kill many deals at the last minute for sellers and they don't like taking the risk when the market is on their side. They may wait for an all-cash offer, but it closes faster in the long-run. In rapidly appreciating markets ( over 10% growth per year ) sellers are now avoiding buyers that will only close if the property appraises for what homes sold for months before the sale )
A mortgage contingency, often included in sales contracts, provides
buyers with a safety net of being able to get out of the deal without
forfeiting their down payment in case they are unable to obtain
financing within a certain timeframe.
Some sellers are telling buyers they want non-contingent offers — and better yet, make it all-cash too.
Source: “Mortgages: When a High Bid Isn’t Enough,” The New York Times (May 9, 2013)