Home Buying in Taylors>Question Details

Bbarn93467, Home Buyer in Taylors, SC

Current sellers won't accept a contingency contract. How do protect yourself if you have to sell your house and then your financing?

Asked by Bbarn93467, Taylors, SC Tue Jul 26, 2011

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It will be very difficult to do so.
First there must be a reason why the sellers have drawn a line in the sand.
If you really want the property your first objective is to find out why.
Web Reference: http://www.321property.com
1 vote Thank Flag Link Tue Jul 26, 2011
Please contact me at 803-309-6950 so we can discuss a course of action that will ultimately get your desired result. I am a 28 year veterane in the real estate business and negotiate contingency contracts in several different markets. Commercial/Residential specifically!! Looking forward to hearing from you
0 votes Thank Flag Link Wed Jul 27, 2011
Hi, The only way to protect yourself is to have that mortgage contingency in the contract. Few people avoid the contingency, especially with the lending climtae today. Years ago it was easier to get a loan but today even the most qualified are running into issues.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes Thank Flag Link Tue Jul 26, 2011
They don't want a sale that asks them to wait or to allow you time to do what you have to do! They want a simple and quick sale. I have seen sellers wait months due to entering into a contingency contract! Then have the whole thing fall through! The market is still not that great so your contingency is not likely to happen in the time frame you think! Contingency says to a seller, I got some wanna be that wants to buy but isn't ready to do so!
0 votes Thank Flag Link Tue Jul 26, 2011
Sometimes it has to do with the advice of the Listing agent. If you have a current contract on your home then usually the Seller is willing to take a contingency offer. If you do NOT have a contract on your home then most Seller's will not because it essentially hides the home from other buyers and they have no way to know when or if yours will sell.

There is a window of time when a Seller has a home on the market when they are very unsure of timing. "What if we get an offer, where will me move?"

Best practice is watch the market closely and have a list of top 5 homes you are interested in, once you get a good offer be in touch with the listing agents, have your pre-approval ready, make an offer on the house you want and try to do back to back closings.
0 votes Thank Flag Link Tue Jul 26, 2011
Homes that are under contract are usually skipped by buyer agents. Though they should not be, especially in this day and age, they are.
Simply placing a contract on a home does not take it off the market, it is placed under contract. Backup contracts are common. Last month 16% of contracts nationwide were withdrawn. The main problem here in the eyes of the seller is your need to sell your home. In this economic condition it could take months to sell your home, it could even take a year. This in turn would tie up their home for months or longer. Perhaps a contract that read " IF another buyer comes wishing to place a cash offer on this home, this contract will be withdrawn".
In turn while selling your home, have your listing agent understand AND put in WRITING that your listing may be withdrawn at anytime and exclude the extension. This way if the home you are wishing to buy sells to another you can take yours off the market. Another solution is to go ahead and sell your home with a thirty day possession clause. This will give you time to find another home when yours sells. IF you can't find one immediately you can temporarily move into a rental home until you find a home. This of course is assuming you will have some equity funds from your sale.
0 votes Thank Flag Link Tue Jul 26, 2011
I have seen many sellers, over my 23 years in real estate sales, that just flat will not accept a contingent contract. There are many reasons, the main one I hear is the belief having to show that the house has a contingent contract ( or some call it a 1st right of refusal) on it will reduce the lookers that will go see it. Some agents won't show it knowing there is a contingent contract on it but not the other 30 homes they could also show a buyer, so they skip it. Some buyers won't want to look at a house they might fall in love with and then can't have because the 1st buyer removed the contingency, if they have been burnt once they will shy away from homes with a contingency on them already. Some sellers have had long waits for the buyers house to sell and they might have given up and walked away.

Most contracts I have seen always have one contingency in them and that is for financing. If you can't get the loan then you can't buy the house but you have not defaulted so you should get your deposit back. should!
0 votes Thank Flag Link Tue Jul 26, 2011
If a seller is having trouble selling thir house, they are crazy not to accept a contract on their home letting you have a contingincy however if another buyer comes along, you have 48 hours to remove teh contingincy or withdraw and the other buyers offer with no contingincy can be accepted. Your buyer agent should be able to inform you about ways to write the contract where the mortgage clause protects you and a home sale contingincy is not needed. Good luck with your offer
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Jul 26, 2011
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