Handling Contingencies in San Diego Home Sales: A Seller’s Roadmap

In San Diego’s fast-moving real estate market—whether you’re listing a seaside condo in La Jolla or a bungalow in North Park—contingencies in the purchase agreement can make or break your sale. Understanding how to handle inspection, financing, and appraisal contingencies will keep your transaction on track and protect your interests.

1. Inspection Contingencies

• Negotiate Timeframes: Standard inspection periods in San Diego range from 10–17 days. Work with your agent to set a deadline that balances buyer due diligence with your desired closing timeline.

• Responding to Requests: If buyers request repairs or credits, evaluate their scope and cost. Consider quick cosmetic fixes (e.g., fresh paint) in North Park while negotiating higher-cost issues (like termite treatment) with credit rather than repairs.

2. Financing Contingencies

• Require Strong Pre-Approval: Ask for a fully underwritten loan approval letter from a reputable lender. In competitive neighborhoods like La Jolla, this reduces the risk of last-minute financing fall-throughs.

• Shorten Financing Periods: Where possible, shorten the buyer’s loan contingency window (e.g., 21 days instead of 30) to increase certainty—especially when inventory is low.

3. Appraisal Contingencies

• Appraisal-Gap Clauses: San Diego home values can vary by neighborhood. Encourage buyers to include an appraisal-gap guarantee so they commit to covering any shortfall between the contract price and appraisal value.

• Comparable Sales Strategy: Provide your agent with recent “comps” in your ZIP code (e.g., 92109). Strong comparables help appraisers support your listing price.

4. Working with Your Agent

• Clear Communication: Your San Diego agent should review every contingency, explain local norms (e.g., low termite tolerance), and advise on which to negotiate or accept “as is.”

• Contingency Removal Incentives: To attract stronger offers, consider offering a small price credit in exchange for a waiver of minor contingencies (like a 10-day roof inspection) while retaining major ones.

Conclusion
Mastering contingencies in a San Diego purchase agreement involves clear deadlines, strong buyer qualifications, and strategic negotiation. By partnering with a seasoned local real estate agent, you’ll streamline inspections, secure reliable financing, and safeguard your sale price—even in competitive markets like La Jolla and North Park.