If you are a buyer who has needs which are satisfied by a property with a house sale contingency, I strongly recommend putting in a back up offer. Here are four thoughts to consider:
1). A house contingency tells you the seller is sincere and has agreed upon an acceptable sales price.
2). You would be surprised how many seller representatives will provide you with the price and terms their seller will accept if asked. If you are able to match the price and better terms your position is greatly improved. The seller may even accept a lower price if you learn what terms may benefit the seller.
3). Your back up offer, if accepted, may give the seller the comfort to require the first buyer to waive their contingency (which may not be possible without the proceeds from the sale of their property) or perhaps further negotiate with the buyer on matters that might not be acceptable to the first buyer; thereby causing the existing contract to cancel and giving you the the ability to buy the property.
4). Consider a clause in your back-up contract which enables you to cancel in the event you find a better purchase. You can continue searching for better properties. This clause may also expedite the seller's willingness to cancel the first contract in the event the buyer did not perform according to the contract terms.
Be sure to have your lawyer prepare the contract terms as they are beyond the legal scope of a licensed real estate agent.
Hope this helps,
There is likely language of the "home sale contingency" to this effect...THE SELLER MAY CONTINUE TO OFFER THE HOME FOR SALE. SHOULD ANOTHER BONA FIDE OFFER BE ACCEPTED BY THE SELLER, THE BUYER(current Buyers) WILL HAVE 24-72 HOURS(kickout clause) TO WAIVE THIS CONTINGENCY AND FOLLOW THROUGH WITH THE PURCHASE.
It is very likely that the current Buyer would not be able to purchase the new home without selling their current home, which would be good for you should they accept your offer. If the contract is HOME SALE contingent and NOT HOME CLOSE contingent, that is to your benefit as HOME SALE contingencies are the weaker of the two.
FYI, the status in MRED of HS48 lets you know that the contract is HOME SALE contingent with a 48-hour kickout clause. Similarly, a status of HC72 lets you know that the contract is HOME CLOSE contingent with a 72-hour kickout clause.
Hope that helps!
Sohail A. Salahuddin | Broker Associate I Visionary
Innovative Property Consultants Team l Sales and Leasing
Jameson Sothebyâ€™s International Realty
425 W. North Ave. | Chicago, IL 60610 â€¨
O: 312.929.1565 | C: 312.437.7799 | F: 847.805.6030
"Local Experts, Global Reach"
So you can certainly make a offer, if the seller wishes to move forward with your offer then the original buyer will have that option first if they want to waive the contingency preventing the new offer from being accepted. Unless the original buyer has a very solid prospect to buy their own home it may be difficult for them to waive that contingency, thus enabling the new offer to be accepted.