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Mikeandval, Other/Just Looking in Monroeville, NJ

Acceptable of offer contingent on quick sale of our house.

Asked by Mikeandval, Monroeville, NJ Thu Aug 5, 2010

We received a counter offer with a contingency that if we sell do not sell our house in 20 days, they would relist their house, but they would give us 48 hours notice before accepting another offer. I have never heard of such a thing. Doesn't that mean that they really didn't accept the offer. We want the house, but don't know if this is a trick. (The selling agent is our agent's brother, not sure if that matters.) Thanks for your help.

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HI! Home Sale Contingencies can be confusing for Buyers to understand. On one hand, the Buyer believes their offer has been accepted and they move forward with inspections.......but in reality, the Seller is actively continuing to market their home for sale [except for the first 20 days in your case] in hopes of finding another buyer who does NOT have a home to sell.

This type of contingency gives a Buyer a "foot in the door" but they risk having it closed in their face in the event a Seller finds another buyer with better terms.

Important to remember: If the Seller receives another offer during the contingency period, and the Buyer (now given 48 hours to remove the contingency) is successful in proving he can continue the purchase without needing to sell his home first, THEN the contract continues with NO OTHER changes. The original Buyer does not have to "meet or beat" the other offer's terms.

Hopefully your agent is competent to explain this in terms that you understand. Good luck!
0 votes Thank Flag Link Thu Feb 28, 2013
Mike & Val,
A home sale contingency with first right of refusal is becoming more common and occasionally is a "win-win" for both parties. The 48 hour "first right of refusal" is typical with this type of contingency. If they give you 20 days in addition to the 48 hour clause, that appears to be generous. Most times when I see this, the seller will continue to market their home immediately with hopes of a better offer. The seller is protected by the first right of refusal and at that point, you would have a decision to make. But this is a viable contract and an opportunity for you to secure a contract on this home. Just make sure that your house is ready to list and is priced within reason. If you are being represented which you should be, do discuss your options with your Realtor or Attorney.

Good Luck!
Frank Dolski MBA, ABR, e-PRO
Associate Broker
Coldwell Banker Hearthside Realtors
0 votes Thank Flag Link Fri Aug 6, 2010
As the others say, it's no trick. It's actually quite standard. Now, 20 days is a reasonably tight time frame. Still, put yourself in the seller's place. They have a house to sell. You want to buy it, but you have to sell your home first.

The sellers don't want to wait around months, with their home tied up with your offer, while you attempt to sell. So they're saying: "Yes, we want to sell to you. But we're really interested in selling now. So we'll give you 20 days to sell your home so that you're able to buy ours. On top of that, if we get another offer in the meantime, we'll give you 48 hours to figure out what to do--sell your home immediately, remove the contingency, etc. So while we'd like to sell our home to you, our first priority is getting our home sold."

To answer your specific question: They really did accept your offer. They're just saying that you've got to sell your home in 20 days or remove the contingency.

It's just like you making an offer contingent on a home inspection. You really did make the offer, but you're saying that it depends (it's contingent) on a satisfactory home inspection. They're saying the same thing: We agree to sell you our home but you've got to sell yours or remove your contingency.

By the way, how'd you end up with an agent who's the brother of the listing agent? That really should affect matters any--except, hopefully, they communicate with each other better than some agents do.

Hope that helps.
0 votes Thank Flag Link Thu Aug 5, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Mike and Val
What that is a "kick out clause". In reality, all those sellers are doing is giving you first right to either produce or back out. In this market, it really is unadvisable to have any seller take a contigent offer. The fact is when you're able to buy a home (having a contract in your home) thats when you make an offer on your next home.

At that point you will be a stronger buyer and perhaps have more leverage in your negotiations,

Good luck
0 votes Thank Flag Link Thu Aug 5, 2010
It is called a home sale contingincy. Basically most read that they have accepted your offer that is contingent upon you selling your home. If you sell your home, the contingincy is removed and you close.

If you do not sell your home, and another offer is delivered to teh seller, you have 48 hours to remove teh contingincy and close. If you have not sold your home and if you can not close without selling your old home, you are released from the contract of buying the new home and get your deposit back, then the house is sold to the new buyer that has no contingincy.

It is common... It should be in sriting and made part of the purchase and sales agreement signed by both the seller and buyer.

good luck with your purchase
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Aug 5, 2010
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