Home Selling in Raleigh>Question Details

Patti O'Reil…, Real Estate Pro in Raleigh, NC

How do your sellers feel about taking an offer contingent on the sale of a home?

Asked by Patti O'Reilly, Raleigh, NC Sun Apr 15, 2012

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5
Brandon Williamson’s answer
I generally do not want to do a contingency unless the property to sell is already under contract and waiting to close. The buyer agent would have to provide the signed contract for the home to sell, the buyers pre-approval, etc.

It also baffles me why a buyer would want to do a contingency without the home to sell sold, new listings are rapidly popping up, price reductions, aggressively priced REOs, etc. It only makes sense if the home is very desirable and hard to come by, but then the odds of the seller doing it are even lower.

Why would a buyer want to lock in terms so early on? There is a good chance the seller would give better terms if they could offer a quick closing, and less of a chance they are out due diligence money.
0 votes Thank Flag Link Tue Apr 17, 2012
Patti

Great question. There really is only 3 ways I would advice my listing clients to accept a Contingency offer

1, "contingent upon sale of another home" offer unless, there is a closing date has been established.

2, the buyer is working with a relocation company.

3, a very large non refundable Option fee is paid to the seller.

Tom Bohlmann
Allen Tate Realty
0 votes Thank Flag Link Mon Apr 16, 2012
Tom,We still haven't seen the offer but I agree The Option fee should be larger! There is no relo company but the other home is located in a fast moving neighborhood! Thanks for your input!
Flag Mon Apr 16, 2012
I think most of us on Trulia agree, the less contingencies, the better. Sale of a home is obviously one of the bigger contingencies, and one that is hard to judge (unless, as Christopher mentioned there is already a contract). If there is already a contract, then this "contingency" changes to a much less troublesome item.
Best wishes, Jim
0 votes Thank Flag Link Mon Apr 16, 2012
Hi, The answer really depends on the sellers motivation. I find that some sellers are willing to do it if they feel good about the purchasers. I normally advise my sellers to only do this if the buyers have a contract in place on their home. The more skin in the game the easier it is for the seller to accept it.


Sincerely,
Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Mon Apr 16, 2012
Westchester is a bit different! Thats a great area. The seller is game but we haven't see the offer. Manly talk "more skin in the game!". Thats too funny!
Flag Mon Apr 16, 2012
Like any contingency it makes the offer weaker. If i am the listing agent working with the seller and an offer with a contingency for selling a previous home comes in, I will prepare a comparative market analysis for the buyers home which needs to be sold. I will assist my seller in determining whether the buyer has priced their property appropriately and the likelihood it will sell.
0 votes Thank Flag Link Sun Apr 15, 2012
Thanks David! I'll do the CMA for the neighborhood when the offer comes. I expect a GREAT offer w/a contingency attached. I told the seller's the showings will drop immediately.
Flag Sun Apr 15, 2012
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