The bump-out clause she's talking about means, that if someone else comes in, while you're under contract with that house-sale contingency, and the seller wants to accept it, they may have the option to "bump you out" of the deal.
In today's market I would strongly recommend NOT having two mortgages (unless you're independently wealthy). Either get your home sold first, or buy with the house-sale contingency, in my opinion.
If my buyer's agent refused to make an offer with the contingencies I set forth, I'd be looking for a new buyer's agent. (I can say that because I'm not a realtor.) It's one thing to advise an opinion as to the likelihood that the offer would be accepted; it's another to proclaim that you "cannot" make such an offer.
In our area, once it's under contract with a contingency for a house sale, it changes from Active (ACTV) to Contingent with a House-Sale-w/24 kick out (CTG / HS24)...
Far fewer agents will consider an HS24 a serious showing for a new client... as we don't want them to fall in love with a house, that in reality they only have a 50% (or less) chance that they can have.
If my clients decide to write an offer on an HS24, the 1st buyer is given the option of dropping their contingency... and if they do drop the contingency, my clients get to move on and find something else, often a little sadder (and wiser) for the experience.
For Bay Area MLS, once a house is under contract, whether it's contingent show or contingent release, contingent probate - the status changes from Active to whatever status it might be. Yes, I do honest think the listing will not be viewed as much especially since there are many houses on market. Not saying that people don't do that - I have a habit of checking contingent releasse / contingent show properties, but I image some of the Realtors won't.
This is one of the reasons why the short sale ones don't want to change their status because the contract is really only accepted AFTER the lenders approve the terms.
Again - this is my personal opinion so I may get rebuttal from other diligent realtors - there are many. So, to play it safe, I will take out 'most realtors' and say 'some realtors' so I don't get killed :-)) O.K. figuratively speaking.
In our area, most of people will only look at Active listings, which means contingency release with bumped out clause or not will be viewed less online and less chance to get another offer unless this house just really stand out.
I will definitely try not get stuck with two mortgages just because of the market. Make sure your house looks the best, priced right, and market it aggressively. If you want to make offer on this house, you might want to start marketing your house ASAP instead of two weeks from now. I am sometimes amazed by how fast we can make things happne when motivated.
In our area, how long you have before you are 'bumped out' is negotiable. Depends on which side I am on, I negotiate it differently - as a seller, I want it to be 24 hours, as a buyer, I'll want to be at least 72 hours or longer if possible.
The other thing is to make sure your other contingency period starts after your house is under contract if possible - this will save you the inspection fees if the sales contingency does not work out for some reason - or have the sellers reimburse you for the inspection fees if you are bumped out for some reasons.
YES - you Can put that offer in.
Let's role play here to help you better understand
A. Let's say YOU are the agent for the seller of the home you are putting an offer on. Would YOU advise YOUR client/seller to take the offer - which is contingent upon the buyers home going to P & S AND having Mortgage qualified buyers? Be Honest - especially if there are buyers out there with NO contingency to sell?
B .Most reputable seller agents would advise their seller clients NOT to entertain such an offer. If the seller does accept - they can still continue to show the home for back-up offers, however, many potential buyers are not willing to be a 2nd or 3rd in line offer. So - the seller is very dependent upon your home selling. Not a good place for that seller to be in. You NEED to understand that so that YOU can make informed decisions.
c. MY concern as your selling and buyers agent would be this:
1. I do NOT want you to be a "HAVE TO " Seller. Which is what you'd be when you have this contigent to sell offer accepted. You would be more likely to jump on a lower offer or poorer terms, just to get the other house.
It is best to price, list, and market your home within prevailing prices and obtain a P & S by a thoroughly mortgage qualified buyer.
2. THEN go out and be in the DRIVERS SEAT as a VERY Qualified Buyer.
Lori, If you'd like to discuss this further it would be my pleasure- it's easy- just call me: 508-479-9833
Mary Condon MBA
I am a Realtor with REMAX Executive here in Metrowest. Its absolutely acceptable to put in an offer with a home sale contingency. However ,it may or may not be the best approach for you depending on the particular situation of the home you want to buy.
Some of the factors we dont know from your post play a significant part in the correct answer. How long has this house been on the market? What is the sellers siyuation -i.e. did they already purchase a home?
If they just listed the house then they are less likely to consider your proposal, if its been on the market many months they are probably more open. If I can help feel free to contact me. John Savignano cell 508 277-1784.
I am a Realtor in the Metro West Boston area and I was particularly intrigued by your post.
To begin, I would like to say the your realtor's statement that you "cannot make an offer on a property with a home-sale contingency" is inaccurate. Your realtor is obligated to write up an offer no matter what. There are specific other things your realtor can do, however, to make that offer AS ATTRACTIVE AS POSSIBLE to the seller. Please let me know if you need any ideas! In today's market, we need to think outside of the box.
As for selling your existing home, I would recommend you start marketing it now....YES, before you list. You want to create as much interest as possible before you list...the anticipation factor. The first two weeks of your listing will give you a very good idea of how much interest there is in your home. Contrary to what the media says, homes are still selling if they are priced right!
Please call or email me (508.561.7164 or email@example.com) if you need any help!
Thanks for clarifying!
Nadia is right, you almost have to have yours one the market AT LEAST with other things she mentioned to be taken seriously. So make an offer that's going to help you get the house, not hurt you. Good luck!