Congratulations on your home going under contract. And congratulations on having a real estate professional who wishes to see your best interests realized. If I am clear on what you've described, you have accepted an offer contingent on the buyer selling her home. Just to clarify, is the offer contingent on the sale or the closing of the sale? Additional questions relate to the time frame associated with activating what we call the "kick out clause." This tends to be 24 or 48 hours. What it means is if you receive another offer that you negotiate your attorney notifies the buyer's attorney to initiate the kick out clause. The original buyer has the length of time stipulated by the kick out clause to stay in the deal (and thus waive any contingencies) or step to the side and allow the new contract to become the standing contract. Bear in mind that the new contract has to come in without any contingencies - something that is a bit tough in the current market. But the possibility of a cash deal is more present today than I have previously witnessed in the past 10 years.
So I guess my primary tangible question relates to whether the contract is not listed to realtors as either HS48 or HC48? While some agents will shy away from these listings, if your place is what my client seeks I will contact the listing agent to determine how solid the contract is. THAT IS THE JOB OF EVERY BUYER'S AGENT. To continue marketing your home and arrange showings is precisely what your agent is supposed to do. Of course, you can say aye or nay to a showing request. But apprising you of another party's interest is your agent's role.
No one among us is able to discern that a contingent contract will bear fruit. That you have accepted a contract predicated on the sale of another unit, in my mind, necessitates that your agent continue to market the listing and to show it. Again, if what you have matches what my clients want and it shows as HC or HS, it is fair game and I, upon discerning through a conversation with your agent what I can about the status of the contract, may very well seek a showing once I have let my clients know that should they love the unit they will have to come in waiving all contingencies (though the contract will be subject to an inspection).
Best of luck!
@properties and The Real Estate Lounge Chicago
Luxury Home Marketing Specialist
Certified Negotiation Expert
Accredited Buyers Representative
I have just a couple of additional thoughts on this, although I agree with Thomas's thorough answer on this. There are two main points that I want to convey.
My first thought is that given the nature of our local Multiple Listing Service, most property results that potential buyers receive are sent via an automated search. Once the search criteria are set up, then the system automatically generates a list of properties that match up to the search criteria. And I typically do not include "CTG" status in my automated searches.
In a market such as this with significant inventory, I typically do not send my buyers listings that are listed as CTG because there is enough inventory that is not already under contract for them to look at. If for some reason their search criteria is narrow enough that we've seen most of the non-contracted units, then I'll consider opening up the search to include CTG units.
The two main reasons that I do this are the follwing:
I do not want my buyer to "fall in love" with a unit that will not be available to them (because someone else who already has it under contract is likely to close on it), and there is no set timetable on the CTG deal.
If my buyer client sees a CTG property, falls in love with it, and wants to "wait it out" to see if it becomes available again, then typically my client will not want to pursue new units in the meantime. If someone who has contracted with a house to sell contingency takes 5 months to sell their house, then my client has potentially missed out on looking at 5 months of new housing inventory that might have been appropriate for them to purchase. I'd consider that a disservice to my buyer.
If in the same scenario my buyer waits it out and the place that they want (that is already under contract) closes anyway, then we've literally just wasted multiple buying cycles and again potentially missed out on many appropriate new properties.
I also wanted to ask if your real estate agent considered making your unit continue to be listed in the MLS in an "ACTV" status a contingency of your contract acceptance? The MLS might have a slight problem with this, but to protect your interests as much as possible a contract with such a contingency or a letter of direction from you to your agent should suffice to diminish any difficulties that your agent might experience from the MLS.
If you did not take this or a similar step at the contract acceptance but you are still within your attorney review period, then you might be able to amend your contract to request this. If not then you'll just need to make sure that your agent is continuing to use means other than the MLS alone to market your property as being available for sale.
Broker Associate, Sudler Sothebyâ€™s International Realty
3934 N. Lincoln Ave. Chicago, IL 60613
773-418-0640 (mobile) 312-577-0985 (fax) 773-293-1200 (off)
Often times the continguentcy of the buyer's real estate falls apart. Place the dates of the contract on your calendar and be ready to put it back on the market immediately following the first date the contract falls apart.
I dont waste my time showing houses that are CTG because 99.9% of the time, I cant show them even if I wanted to. The reason being, they accepted a contract, so the sellers dont want the house to be shown anymore. And why would I want to waste my clients time, and take them to a house that is already under contract. I think CTG will definitely limit the traffic on your house. Houses are not flying off the shelves right now, so I would of been very skeptical in selling your house CTG on the buyer selling theirs. Mostly because of the obvious, who knows how long it will take the buyer to sell their house. And you could be missing out on some prime buyers by taking your house off the market at this point in the season. I steer all my clients away from CTG on sale contracts. In fact, in this market, I steer my clients away from CTG on close contracts, because they just arent safe. They are too risky, and like you said, you lose a huge amount of potential buyers by being CTG in the MLS. I personally would try and get out of the CTG on sale unless the person gave you way to much for your house. Either way, I hope it works out for you. Good luck!
Americorp Real Estate
Brokers Associate, e-PRO