Home Selling in 14043>Question Details

Sophie, Home Seller in 14043

My realtor thinks I should accept the contingent offer. She said it's better than nothing, and the house would still be marketed and shown.

Asked by Sophie, 14043 Sun Mar 27, 2011

The buyers house is not sold yet. She said I could accept another offer, and ask my 1st buyers to lift the contingency, and if they couldn't, then the deal would be off, and I cound sell it to the 2nd buyers. I think there is more to it than that. I also feel that once the house is tagged contingency offer, the agents are going to be reluctant to show the house. Thoughts?

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I have had contingency offers come in before on my listings and twice we negotiated the offer but did not sign the agreement to buy...this serves both parties well. The seller can still keep active and has a back up plan...the buyer doesn't have to put up any money and if their house doesn't sell they aren't out anything!! The buyer also still has the option of looking at other houses in the mean time. With no signed agreement both parties are aware that they are not locked into the deal but it does ease their mind because there is something there waiting in the buyers house sells. Everyone has to be in agreement as to what is being proposed and what the results could be. The buyer has no clain to the house and the seller has no obligation to the buyer.

I might also mention that in both cases another buyer came along before the first buyers house sold, it's a strange thing that happens when an offer is made on a house so many times another one comes along right away...can't explain it!!
1 vote Thank Flag Link Mon Mar 28, 2011
It all depends on how the sales agreement is executed , there are ways to work around allow home be on market AND if buyer does sell the home move forward with purchase of your property

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
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http://www.lynn911.com
0 votes Thank Flag Link Mon Mar 28, 2011
Another variant on what Vickey W suggested, that I (and some other investors) use, is to accept (on the sell-side) or submit (on the buy-side) a flex-option. That will enable you both to get what you want, and your agent wouldn't have to change the status of the listing; the buyer can exercise his/her option when s/he is ready to close.
0 votes Thank Flag Link Mon Mar 28, 2011
True. Most agents will look past houses once they have been placed in the contigent status. With the amount of bargains in todays market I'm sure there's another bargain in the same neigborhood. Visit http://WWW.JPREO.COM as you will find lots of useful information. My advice would be to take what you can as I find lots of buyers to be extremely picky because of the amount of bargains in todays market.
Web Reference: http://WWW.JPREO.COM
0 votes Thank Flag Link Mon Mar 28, 2011
All good points from other agents. As a local broker in WNY, I can tell you that our inventory is not what it is like in other markets, with a flood of bargain foreclosures and other inventory. Buyers are very picky in this market and I respect any offer that comes in with reasonable terms and price. Yes, we can flag the property as "Contingent" but 99.999% of homes here are not flagges as such, because it probably does discourage other showings. Agents merely verbally tell a buyer or agent the situatuon when they receive interest on the home. Usually there is a 7 day window to remove the contingency and if the 1st buyers can't or won't, you can absolutely sell to the 2nd.

Your agent said the offer was "better than nothing". Yes, the sellers need to be motivated and prove to your agent that their house will sell soon, but how has your house sale gone? The above statement makes me think you have been on the market long, with no offers. Is this the first offer within the first week or two of listing? Or is this a solid offer recieved after months of showings and price reductions?

If your house shows well, it will sell. If it hasn't, a contingent offer is a valid offer to accept.
0 votes Thank Flag Link Mon Mar 28, 2011
There is not tag "contingency offer" in our MLS. Have your attorney put into the contract that the house will continue to be actively marketed as "available."

Otherwise, I am with you; do not sell contingent upon the buyer selling their home...you have no control over the buyer's transaction.
Web Reference: http://Gailgladstone.com
0 votes Thank Flag Link Mon Mar 28, 2011
Your concerns are valid.

However, the next logical question is: How likely is it that the buyer will be able to sell his/her home? Your agent should look at the property and determine (for you) what it's worth. Then: Is it currently on the market? If not, that's a red flag. If it is, at what price? How does that price compare to what your agent thinks it's worth? If the comps say $200,000 and it's on the market for $220,000, that's a bad sign. If it's on the market for $175,000, at least that means the buyer/seller is serious and has priced the property to sell. How long has that other property been on the market? 21 days? That's not long enough to really judge. But 150 days? That suggests that either the home is overpriced (despite the appearance of the comps) or that there's something else wrong with the house.

In short, your agent should advise you about the marketability/likelihood of sale of the home of your potential buyer. Then you can make a better-informed decision about whether to accept the buyer's offer.

Hope that helps.
0 votes Thank Flag Link Mon Mar 28, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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I have found , from personal experience, that my buyers don't want to see a house that is 'contingent' unless they are thinking about buying something else in the area and then only want to look at it for comparison sake.
0 votes Thank Flag Link Mon Mar 28, 2011
Sophie,

The problem with this arrangement is that the contingency offer would need to be disclosed on the MLS data. It would therefore be viewed by agents and potential buyers as a property with significant interest and a contract in place. Both buyers and agents tend to shy away from these situations. Thus, you would essentially be seriously limiting your home's availability for additional opportunities.

Ask your agent about how this will be handled.

Good luck,

Bill
0 votes Thank Flag Link Mon Mar 28, 2011
Sophie,
What are the benefits to you if you accept? Is it full price, no other contingencies, high earnest money? I consider a contingent upon sale offer a concession. You may be technically on the market, but I tend not to want to show buyers contingent properties because they may fall in love, but not be able to get it.
If the property they plan to sell is market ready, priced right and they are willing to do what it takes to sell quickly, you can consider it, but research the home they are selling or you may be wasting your time and missing some prime selling season.
0 votes Thank Flag Link Sun Mar 27, 2011
I'm not sure how your MLS system works, but in our MLS system a property that is active on MLS can be marked 'contingent on.....' inspection, third party approval, other, etc.

I would suspect that if you are required on your MLS system to show that contingency that agents would be hesitant to show that property, especially if the contingency is not explained on MLS but rather says 'other'.

However if the offer is strong (other than the contingency) and there's a reasonable chance the buyers home will sell (appropriately priced, salable, good area) you might want to take the chance. But the decision is entirely up to you.
0 votes Thank Flag Link Sun Mar 27, 2011
Based on the limited information posted, I believe you're correct. I don't know how agents work in your area, but we simply have too many listings in our area for agents to show contingent listings. It may be preferable for the buyer to contract on your home when he/she has a solid offer on the table for their existing home.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Sun Mar 27, 2011
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