We are looking at a home that is new construction. Being listed by a realtor for the builder. There is an

Asked by Marge, Tinley Park, IL Mon Feb 11, 2008

offer on the house with a contingency that the buyer sell his home first and he is offering the full asking price and $100,00.00 down . What are our options at this point? Do we bid over and hope he can,t handle 2 mortgages? How much higher should we go? Wait for the contingency to end and offer less? I am so confused, help.

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Vernie Foster, Agent, Bradley, IL
Sat Nov 16, 2013
Hi Marge,

The BV Foster Team has experience on both sides of a new construction home. Having worked for builders for over 10 years, we can share some insight with you. First and foremost, is that you are ready to sign and purchase. The offer that is contingent is not a true offer if it is contingent upon someone buying their home. It simply means that they would purchase the home if theirs sells. If it is only waiting for the closing of their home that is a different story. We have extensive knowledge in the true price of a new construction home versus a pre existing home. If you are not currently working with a Realtor, we would love to help you in your search. Call us today at 815-216-1400 oe email us at TheBVFosterTeam@cbexchange.com
0 votes
Linda Kelleh…, Agent, Sandwich, IL
Tue Jul 29, 2008
Hello Marge!! How long has the contingency been on this property? As long as you are qualified to buy..it doesn't matter that you aren't putting $100k down so don't be intimidated by that. Bottom line...the guy could pay the whole thing in cash but if his house doesn't sell the builder gets nothing. Go in with an offer you are comfortable with. Builders now are taking huge discounts on new construction. If the builder doesn't like your offer..go higher..provided that you are comfortable with that. THEN...the original buyer will be forced to make the decision of 2 mortgages. Depending on how long this contingency has been on, at the very least his home will be for sale for the same amount of time and maybe longer. In this market would a buyer risk carrying 2 mortgages especially if he's had his home on the market for awhile with no bites? You really have nothing to lose by going after this. IF you wait until the contingency ends, it only gives the original buyer that much more time to get his home sold. I'm thinking you aren't working with a Realtor yet as they should have explained and guided you thru this. I wouldn't go into this particular negotiation without one! I'm here to help! I am a full time Realtor with REMAX and negotiations is very definately my strong point! I am happy to help you or answer any questions you have. you can contact me initially via email @ llkelleher@comcast.net
Web Reference:  http://www.lindakelleher.com
0 votes
Dawn Olson, Agent, Bradley, IL
Tue Jul 29, 2008
In addition to what Naima has said, the first buyer would have to prove, in writing from their lender that they could carry both (bridge) loans. If I were your agent, I would ask you this first...... Do you have something to sell first? Are you PRE APPROVED with a lender? How soon can you close? The first buyer is not a bonafide buyer until they have a solid deal on their house first. So, a buyer that has nothing to sell, has solid financing and can close soon is more appealing to a seller than a buyer that has something to sell first and could cause a chain reaction of chaos.

I would not over bid, in fact I would try coming in at $10,000 less if you are a strong, solid buyer. The builder may be willing to take a $10,000 hit and sell it sooner and without all the baggage of sale contingencies!
0 votes
T.E. & Naima…, Agent, Dallas, TX
Mon Feb 11, 2008
Althought I am not familiar with the Illinois rules of the past 13 years, here is what would happen in my market.

The first offer may have what is called a "kick out clause" which means if another buyer (you) makes an offer and doesn't have a contingency and the terms are acceptable, then that seller has to give that buyer (first guys) the option to remove the contingency. this translates into that they would have to buy this house without having to sell their house which means they would have to qualify for 2 loans.

If there isn't such a clause, then you have to wait for the closing date they have on the contract to come and go to make the contract null so they can accept your offer.

Get yourself a buyer's agent that will represent you and write the offer for what you feel is a fair price.
Web Reference:  http://www.sumnerrealty.com
0 votes
Search Advice
Search
Ask our community a question
Home Buying in Bourbonnais Zip Codes

Email me when…

Learn more