Why Non-Contingent Offers Matter in California
In California's competitive real estate markets, sellers receive multiple offers within the first week on desirable properties. When a seller has a non-contingent offer on the table, contingent offers go to the back of the stack. Sellers know that a contingency, particularly a sale contingency that requires the buyer's current home to sell, introduces significant risk. Many sellers will accept a lower non-contingent price over a higher contingent one.
A bridge loan pre-approval removes the sale contingency entirely. The buyer's ability to purchase does not depend on their current home selling first. This is what allows bridge loan buyers to make non-contingent offers that compete directly with cash buyers.
Financing Contingency vs. Sale Contingency
A financing contingency allows the buyer to exit the contract if they cannot secure a loan. A sale contingency allows the buyer to exit if their current home doesn't sell by a specified date. Bridge loan buyers can typically remove the sale contingency (their current home selling is no longer required to fund the purchase) and may also be able to remove the financing contingency if the bridge loan is fully committed.
How California Bridge Loan Buyers Use Non-Contingent Offers
The process starts with getting a bridge loan pre-approval from North Coast Financial. Once pre-approved, you can present a non-contingent offer to the seller backed by the lender's pre-approval letter. The seller sees an offer that can close in 2 to 2.5 weeks without any sale contingency, which in most California markets is treated nearly the same as an all-cash offer.