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Building Not…, Home Buyer in 18235

Made an offer on a house that has been on market for almost 2 yrs. Seller would not accept a contingency until ours sells. WHY? what could he lose?

Asked by Building Not Buying Now, 18235 Fri Oct 1, 2010

It's a shame that when the market is as bad as it is, seller's who have had a house listed for such a long period of time <2 years>...get a good offer and refuse to sign a contract because of a contingency. We asked for 3 months to sell our current home and they refused to allow us that time...yet their house has been on the market 24 months! What's wrong with this picture?

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There are still a few people stuck in the 2006 Market Mind Set! Move On...that place will be there in another year and maybe they'll recontact you.
1 vote Thank Flag Link Fri Oct 1, 2010
Goood for you! This seller will not be the first to learn a hard lesson from this market. Congrats on your home sale and best of luck with the building of your new home!

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Sat Oct 2, 2010
Goood for you! This seller will not be the first to learn a hard lesson from this market. Congrats on your home sale and best of luck with the building of your new home!

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Sat Oct 2, 2010
That could very well be true JR...! I wish him well in any case..

Thanks again for all of your input! :)
1 vote Thank Flag Link Sat Oct 2, 2010
Build: JR..In my situation the property I made the offer on would have remained on the market while I tried to sell my house...sooo the seller had nothing to lose..

JR: Most agents will not show and most buyers will NOT WANT TO SEE a house with an accepted offer. Even buyers who do want to see it most will not make an offer because they don't want to get into a bidding war in this market. They will tell their agent to let them know if it falls through. I think your offer should be a signal to the owner to lower the price. That's obviously why it hasn't sold in 2 years.
1 vote Thank Flag Link Sat Oct 2, 2010
Reading your follow up and understanding that the home would continue to be marketed and that there was a 25 kick out period (that's about as tight as it can be), I am surprised that the seller didn't accept your offer, particularly if you were the only party to put pen to paper in 2 years.

Go figure!

Best,
Jeanne Feenick
Unwavrering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Fri Oct 1, 2010
There could be the fear that your home will be on the market just as long and they can risk taking their home off the market and not getting exposure and there is always the possibility of your home sale not going as planned.
0 votes Thank Flag Link Fri Oct 5, 2012
Yes Aggie. The seller's agent said it was because of the contingency. He countered with price and we agreed on the price. He didn't want to wait for our house to sell. We wanted 90 days. He refused and again the property would have remained on the market even with the contingency so after the 2 years it was on the market I think that asking for 90 days to sell ours wasn't that unrealisitic.

By the way, we received an offer after 9 days of having ours listed. We are hoping the deal goes through for our buyer . That seller should have taken our offer! We are now building instead.

Thanks for your response! :)
0 votes Thank Flag Link Sat Oct 2, 2010
Not motivated to sell. Maybe you could offer to allow him to keep the property on the market Active while you are still trying to sell your home. Then once your home goes under contract, make the sale Pending and move forward with confidence. If it has been on the market for 2 years, you both have the same risk.
0 votes Thank Flag Link Sat Oct 2, 2010
hhmm...most of the answers to this question were regarding the contingency... All we have is your opinion that it was a 'good" offer. Perhaps the sale contingency was not the issue at all. Perhaps it was price? Did the seller's agent indicate that the ONLY reason the seller was not accepting your offer was because of the home sale contingency?
0 votes Thank Flag Link Sat Oct 2, 2010
and so the property will continue to sit on the market after 2 years...

I totally see your point JR..however...after 2 years I would have jumped for joy that someone even considered giving me an offer...This isn't NYC...this is the hills of PA...not much employment, average schools, and according to Trulia no houses are listed as "sold"..

Truly I appreciate the input and it is why i asked the question to begin with...but after reading the feedback and getting an offer on my property that I am selling...I feel the seller made a huge mistake and I hope its not one he lives to regret ...He could have had the first "sold" property on Trulia in his area!
0 votes Thank Flag Link Sat Oct 2, 2010
Dp3...The property would continue to be marketed even if the seller accepted my offer with contingency. So he had nothing to lose if a better offer came in it would sell out from undrneath me. BUT in the meantime he at least had my offer to entertain...I mean after 2 years and no offers...I think my offer was a clean and realistic one..and again if another buyer came along that could purchase it without a contingency, that buyer would get it.

I am sure I am not the only buyer that has a property to sell first. I am also sure at least 30% of buyers have a property to sell first.

This home is empty and will only depreciate as it sits there...winters are rough in the area.. Hence as my profile name states...I will now build and not buy.. I put most of the blame on the sellers in this market...its clearly a buyer's world out there so when a buyer comes along that is interested, a seller should work with them to come up with a deal since buyers are so hard to come by.

Thanks for all the input from everyone! My house has been on the market for 9 days <not 2 years like the property I wished to purchase> and I have a potential buyer as of yesterday when I posted my question on here...I assure you I won't let my buyer get away...I am doing everything I can to help my deal go through...Shame isn't it.. ? The seller I was dealing with should have taken my contingency!
0 votes Thank Flag Link Sat Oct 2, 2010
That seller might be willing to accept that contingency provided you also include a clause that allows him/her to continue to market that property until you waive that contingency. Also, keep in mind that there are plenty of other ways to accomplish what you want without necessarily getting the seller to accept that specific contingency.

Additionally, you asked several times what the seller has to lose, and I'll tell you. The longer his/her property continues to rot on the market, the more s/he could watch more equity continue to drain out of his/her property every month in a declining market. For example, if the current market value (CMV) of a property is $180K, property values have declined 33% over the past year, and the property values in that market are still declining, then in 6 months that CMV of that property will be $150K. In other words, that property will have lost $5K/month of equity assuming the current conditions will continue to persist 6 months later.

If you're determined to buy the property, but you'd like to do it only after you've sold your current one, then you could make an offer to buy the property with seller financing or a lease-purchase, and you could refinance him/her out or exercise your option respectively. This way the seller knows that you're serious about buying the property, but you need more time to complete that transaction.
0 votes Thank Flag Link Sat Oct 2, 2010
There is no right or wrong answer here. In my experience it depends on what the buyer is selling and how is it priced in comparison to others in the same neighborhoood or area. As a listing agent if I rec. an offer that is contingent on the sale of a home, there is homework to be done before presenting the offer to my seller.
Is their home on the market? If so, how is it priced in comparison to others similiar? What is the average DOM? I have even gone as far as to view the home personally. I would not want my seller to take a contingency when the home is not yet on the market without knowing what I had prev. stated.
I recently had a situation where I had the buyer and we put in a sale and settlement contingency but the offer was rejected by the seller because of the contingency. Home was on the market for about a yr. and was owner occupied by the Realtor. I knew the buyers home woul sell fast by facts in areas and it's updated condition but could not convince the Realtor/owner to accept on advise of her Broker. Well my buyers house sold in 2 weeks and luckily for that seller they went back to her property. We settled last week! Bottom line is in this market listing agents MUST do their homework before advising their clients.
Bev Kalb,
Realtor
Century 21 Longacre Realty
0 votes Thank Flag Link Sat Oct 2, 2010
JR..In my situation the property I made the offer on would have remained on the market while I tried to sell my house...sooo the seller had nothing to lose..

My offer would have worked had mine sold but if another buyer came in in the meantime I'd have 24 hours to buy the property outright or I'd lose it to the next buyer..

The houses in my area are selling fairly well considering the market...where I was looking to buy not so well obviously as its been for sale 2 years!

AND again...in 2 years I was their first offer..no other bites...nothing..

So now I will build. I felt better in my decision to buy in this market because of how many houses there are out there to purchase with no buyers..but after getting a taste of a seller not taking advatage of a win-win situation..I feel that building is the way to go.
0 votes Thank Flag Link Fri Oct 1, 2010
I would never advise a client to accept an offer contingent on another sale. I can't imagine any of their lawyers going along with it either. When buyers put in a contingent offer, they usually are thinking they are going to get more out of their house than they do. I can think of two instances of expired listings I took on that had a selling contingency blow up in their face. One was listed at 1M. The buyer offered 1M, full price, contingent on the sale of their home, which they promptly listed so that they would net more than 1M. Their house never sold. Sellers can't afford to take their homes off the market and watch their equity slide. What happens in a case where, I offer 500,000 for your house contingent on my sale. Now 6 months later my home sells. Your house has lost value, do I now try to renegotiate the price?! Even if I don't, the appraisal may not work out.

Find yourself a buyer, THEN go find a house you like. You will be GOLD to that seller.
0 votes Thank Flag Link Fri Oct 1, 2010
Thank you Kevin and I do understand that but even with a contingency, the house would remain on the market so the sellers could still entertain other offers...They had nothing to lose but accepting an offer that after trying to sell for 2 years was better then nothing!

I have to agree with Dave, sellers really need to understand that it is in fact a buyer's market. As a seller myself right now I would accept any offer I could bait in this market!

My house I am selling has been listed a week and the first person that qualifies and shows interest will get it. If I am offered a contingency I see it as better that possibility then nothing at all!
0 votes Thank Flag Link Fri Oct 1, 2010
Hello,

As an agent, in this type of market , there is no way I would suggest a seller accept an offer contingent on another sale. If accepted, now two homes need to sell in order for the seller to make any money/move on in life, not just one. Getting one closed in this market can be complicated enough.

I realize this can be frustrating, but would you take an offer on your current home you are trying to sell that was contingent on the buyer selling their home first? It's like making an offer with no proof of funds, they might be there someday, but not right now.

The picture isn't wrong, it is reality. It is hard to hear, but it is the truth. The good news is it sounds like the home has had a hard time selling. If you can sell your home within 3 months chances are it will still be there and then you can purchase it with no contingencies on a sale. You might even be able to offer a lower price (I would take a lower priced non contingent offer anyday over a full price but I have to sell my home first offer).
0 votes Thank Flag Link Fri Oct 1, 2010
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