Home Buying in Hillsborough>Question Details

Lorigs, Home Buyer in Hillsborough, NJ

Is it normal for a seller to keep their house on the market after they have accepted an offer and are waiting for the buyer to sell their home?

Asked by Lorigs, Hillsborough, NJ Sat Jul 31, 2010

Help the community by answering this question:

Answers

10
Not only is it typical, but highly recommended. Most contingent offers, like one contingent on the sale of another home, stipulate that if another offer comes in then the contingent buyer has so much time to remove the contingency or the contingent deal is is considered canceled. This helps to protects the Seller in the event the contingent Buyer is unable to perform.
1 vote Thank Flag Link Sat Jul 31, 2010
Yes. Typically, that is referred to as a right of first refusal situation. Because the buyer can't buy the home until the buyer's home is sold, rather than a seller taking their home off the market for a contingent deal, it is left active. If another non home sale contingency buyer comes along, than the original buyer has a right to waive the contingency and move forward, or let it go to the other buyer. Some details are usually structured by the attorneys, but that is essentially what happens. Hope that helps.
1 vote Thank Flag Link Sat Jul 31, 2010
Sometimes there is a "homesale contingency clause" where by the sellers accept an offer but continue to market the home giving the buyers the chance to sell their home within a certain timeframe. If a buyer comes in who does not have anything to sell, then the contract holders (1st buyers) have a limited amount of time to either remove the homesale contingency clause and move ahead with the purchase, or relinquish their contract rights to the sale. So, yes, during this time, the property is typically kept active and not put "under contract" on the MLS. It really varies by transaction.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Thu Aug 12, 2010
Yes.

I hope your agent has explained the meaning of the "bump clause" to you; how the story plays out if the Seller receives an offer from a buyer who does not have to sell their home to make the deal work.

All the best,
0 votes Thank Flag Link Sat Aug 7, 2010
Come to the table, sign, and walk away with a certified check or cash.

Under contact means little til the above happens.
Web Reference: http://www.rentlaw.com
0 votes Thank Flag Link Sat Aug 7, 2010
Yes normal, common and adviseable from sellers perspective since in reality you may not be able to buy their home. However the seller should be disclosing that they have accepted an offer with a home sale contingency to other prospective buyers and agents. If they are not doing this they are misleading which would be viewed as unethical.
0 votes Thank Flag Link Mon Aug 2, 2010
Yes Lorigs, especially in this market. Even more so if the buyers have put any type of contingency in the contract, such as they have to sell their home first, or the offer is subject to a mortgage contingency, etc. As stated, this allows the sellers to have options should the first contract fall through.


Howard "Bucky" Buchanan, SFR
Weichert Realtors
Mobile: 908-566-5547
Office: 908-735-2552 x208
eFax: 908-847-0239
http://www.buckybuchanan.net
0 votes Thank Flag Link Sun Aug 1, 2010
well first of all, a sale is not closed until everyone gets to the table and signs their life away. Then at that point the sale is final. So why would anyone take the home of the market and risk losing a potential buyer if the original agreement falls through? So many things can go wrong in a transaction before settlement that it's only prudent to keep the home on the market for sale!!
0 votes Thank Flag Link Sat Jul 31, 2010
Lorigs,

As others have stated, it is normal behavior for a seller to keep their house on the market after they accepted an offer IF their buyer has a home to sell. As Ian stated its a right of first refusal. If the another buyer comes in with an offer, you can remove the contingency and move forward but if you don't sell your home, I'm assuming you won't qualify for a mortgage thus breaking the deal if you have a mortgage contingency clause.

Look at it from the seller's side -- you are a seller right selling your home. Do you want a buyer to come with a home sale contingency? Thus meaning if his house doesn't sell, he can't buy your's and you can't buy the house you want. Its a domino effect and thats why home sale contingencies are frowned up.

Again, this should've been explained to you during negotiations (if your agent included a home sale contingency in your sales contract) or at least during attorney review. You would have had to agree to this to move forward.

I hope that helps. Good luck with selling your home so you can move forward with your purchase. It's critical, if you want to buy and sell to follow Marc's recommendation on the pricing. I'm assuming your agent told you this already but I'm just reinforcing it.

Gina Chirico, Sales Associate
Lattimer Realty
973-715-1158 cell
973-575-6353 ext 17 office
Gina@GinaChiricoRealEstate.com
0 votes Thank Flag Link Sat Jul 31, 2010
Absoutely,

You cannot expect a seller to just sit there and wait for you to sell. It is important to price your home realistically and get it sold as soon as possible. That means pricing it lower than the recently sold comparables. Not the same as the other listings, but lower than all the other listings. You want to be the next to sell. You do not have time to wait, unless you don't mind losing the house you bought to another buyer who does not have a home to sell.

Good luck!

-Marc

Marc Paolella
Relocation Director/Appraiser
Century 21 Joe Tekula Realtors
Phone (direct): (973) 584-4235
Coolest map-based home search: http://www.marcpaolella.com
0 votes Thank Flag Link Sat Jul 31, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer