Home Selling in Plymouth>Question Details

DanielJoe, Home Seller in Plymouth, MN

I have a possible contingent offer on a home sale in west metro, and buyer isn't on the market yet - should that scare me? Or is that common?

Asked by DanielJoe, Plymouth, MN Tue Feb 25, 2014

and… they're being multi-month cooperative with an end-of school year closing date.

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Usually if it is not on the market yet it should be soon (within days), otherwise that does indeed put a seller in a tough spot. As a listing agent I like to see the listing.....how it is marketed by the Realtor and if it is priced well or not. If it is not on the market I can't see that, but remember you can call the contingency due at any time. I think a lot of sellers forget that, but you are still in the driver seat.

So no I would not let that scare you. At the end of the day you always have to ask yourself "is this the best offer, or can I expect something better?" A lot is going to change come spring and most likely in a good way for sellers.

Only you and your Realtor can figure it out together. Good luck!

~Chris Block
Realtor 651-307-7663
chrisblock@thebridgerealty.com
1 vote Thank Flag Link Tue Feb 25, 2014
Well I think some of this is you trusting the Realtor. We are not salesman Daniel. Our job is to always do what is best for the client, and to be self-serving is a serious offense by breaking our fiduciary responsibilities to you. Besides, I hardly would think your Realtor is motivated if they advise a June closing date. Backwards since we get paid faster with a non-contingent buyer right? Anyways, 99% of us agents filter out offers accepted so our buyers will miss the property. However, with the tight inventory this is something I have changed. I would absolutely show your home to a non-contingent buyer. Much greater chance with this contingency versus any other type for success. YOU CAN CALL IT ANY TIME! Think the flip side: you already have an offer that you can leverage against other buyers. Very powerful negotiating stuff if you ask me, because I gotta tell my buyers if they want the house they gotta pay a premium.
Flag Wed Feb 26, 2014
Thanks - my agent has been helpful, but is also motivated to close a deal - we have been up for 2 weeks and have had 10-11 showings. Great reminder about us dictating more of the contingency dates. The later June closing is of benefit to let our family finish the school year. ANOTHER QUESTION; as agents, if a home is sitting on a continent offer, do you typically bother showing to non-contingent shopping buyer - to bump them out-(considering)-- or do you skip it.
Flag Wed Feb 26, 2014
It shouldn't scare you if the buyer can carry two mortgages at the same time, but if this is not the case and the buyer's home is not on the market it could pose a problem for you if their home does not sell quickly. In the interim, you could be passing up on other offers from qualified buyers who are ready, willing and able to close in a timely manner . My advice would be to speak to your agent or a real estate attorney for proper guidance
1 vote Thank Flag Link Wed Feb 26, 2014
Your going to miss the hot market if their sale falls through. A bird in the hand is typically what I advice my clients but in this case waiting until a June to close is setting yourself up for disappointment. If your buyer had a fully qualified buyer and gave you a large earnest money check that would be non-refundable then that is a different story. I am sure you are in good hands with your current agent. They really are the best ones to advice you. Best of luck to you in your sale ~ take care.
1 vote Thank Flag Link Wed Feb 26, 2014
I would at least want to know what they plan on listing their home for? In addition, they need an offer to really make this work anyway, so their is incentive for them to hurry up. It wouldn't scare me too much but I would keep the contingency removal period under 48 hours if it were rme. This practice seems to becoming more popular once again with it becoming more difficult to find a home then to sell one. Otherwise I think Christopher answered it pretty well.

Nick P Johnson
Keller Williams Classic Realty NW
651-263-2894
1 vote Thank Flag Link Wed Feb 26, 2014
It sounds like you have a verbal offer at this time. I suggest you keep showing the home until you have a signed purchase agreement. Your listing agent should be able to answer your questions regarding contingent offers. I would suggest you not accept an offer that is contingent unless the property is already on the market.

That's my two cents!

Gina Schedivy, Realtor
Geisinger Group, Inc.
952-807-7317
0 votes Thank Flag Link Wed Feb 26, 2014
Seller should not remove their house from market in today's RE market. It is sellers market right now. If your house is good and is priced to sell, you will easily get another buyer right away. You can accept contingent offer and require that seller can remove contingency with 24 hour notice or cancel it. & will continue to market the house.

If you have a good house to sell, I will just say no to this buyer....your call.
0 votes Thank Flag Link Wed Feb 26, 2014
My best advice at this point is to discuss all of this with your Realtor. Trulia Q & A is good for general real estate questions, but we don't represent you. We certainly don't know the ins and outs of your specific home. To take our advice over your Realtors is backwards. You pay him/her for this exact moment.

Nothing wrong with cross checking what someone tells you and make sure they are not lying, but I am just saying trust must be present in a Realtor-client relationship. You can't second guess everything the Realtor tells you, otherwise this transaction will be a headache period. If you don't trust the answers they are giving to your questions there is a problem and it must be fixed. There is too much money on the line for this transaction to get botched.

And ethically I don't want to step on anyone's toes and say my advice is better than who is representing you. None of the Realtors here want that.

Good Luck!

~Chris
0 votes Thank Flag Link Wed Feb 26, 2014
It shouldn't scare you as long as you have the right verbiage in the contingency. Most will have a 48-72 hour bump clause meaning if you receive another non-contingent offer the first buyer needs to produce an offer on their house within that time frame.

You can still market your home for a non-contingent offer. A lot rides also on where that buyers house is and the price it is at.

You have the upper hand here, if anything the buyer should be worried they could get bumped out of 1st position. Good luck!
0 votes Thank Flag Link Wed Feb 26, 2014
A lot of great answers here already. If the contigency is written properly and in your favor there is little risk and you can stipulate in there how long before the buyers home has to be on the market.

I would definitely speak with your agent as they know all of the ins and outs of your transaction/circumstance and can give you advice on how to handle this properly. Good luck.
0 votes Thank Flag Link Wed Feb 26, 2014
Hi, DanielJoe!
REALLY good question! This gives us an opportunity to discuss these things.


Accepting a contingent offer in this market seems unnecessary. There are lots of buyers out there. So, for you to consider allowing this type of risky offer have some stake in your sale seems like high stakes for you. I'm not your agent and I don't pretend to understand all of your circumstances, but, if you were my client, I'd advise you to pass at LEAST until the property was on the market. If the buyer COULD qualify for 2 mortgage payments, they wouldn't be writing contingent. AND, in MN the only valid circumstances for REMOVAL of the contingency would be a VALID purchase agreement on the back up house.

Now, mind you, I have no way of knowing the particulars of your transaction. Maybe it's been on the market a long time, maybe it's priced above market. If that's the case, you may be more likely to enter in to this contract. Pricing your property appropriately for it's location, condition, size and age is key. You don't want to have the appraisal quash the whole deal. Where is your agent in all of this????

Good luck~
0 votes Thank Flag Link Wed Feb 26, 2014
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