We have found a house we love , how much should we offer ,considering we are making a contingency offer .

Asked by Mike Henkelman, Elk Grove Village, IL Sun Nov 2, 2008

We have placed our house on the market . We feel our house is better than most in the area , upgrades and price . I want to know how much to offer on the house considering it has an offer that the family is not pleased with . Our agent told us that the family would entertain our offer despite the fact they have an offer . I dont want to lose the house but I dont want to offer too much . Is 90% the asking price a good offer ?

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Bob Brandt, Agent, Schaumburg, IL
Wed Nov 5, 2008
Trying to think outside the box for you....Entertaining and accepting can be way different..
How about telling them verbally you will pay $2000 more than their current offer up to your cut off price, if they give you 90 days to sell your house?
It is kind of an after the fact escalation clause. Of course, your agent is the one representing you and you should consider their opinion strongest.
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Wayne Beals, Agent, Chicago, IL
Tue Nov 4, 2008
I thinks it's very difficult to generalize how competitive an offer is from a percentage of List Price.

Many sellers are taking a hard look at the comparables and pricing their property very fairly. At the same time, others are pricing their properties at the top of the market, hoping for a sale price which may no longer be realistic given the current market conditions. In cases such as these, 90% of list is not out of the ballpark.

It is impossible to say if 90% of asking price is a good offer without more detail of the property size, features, construction, location and condition. These factors can be compared with recent closings in the market area and a price range can be determined. In the end, a property's value is what a ready, willing and able buyer is willing to pay today.
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David, Home Buyer, Chicago Heights, IL
Mon Nov 3, 2008
90% seems extremely low, if they really have a different offer that they are contemplating. You need to offer more than the other potential buyer did, obviously.
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Brandon Schu…, Agent, Western Springs, IL
Mon Nov 3, 2008

My only suggestion is to be very careful with the sale contingency.

More and more people have got into trouble with buying a home and having trouble selling their home. If you're prepared to carry at least 2 mortgages for a year, then try it. Also, make sure you get a pre-approval from the bank. Banks are really tightening up and I would hate to see you get an accepted contract and then fall through because you can't get financing.

Good Luck!
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Wayne Beals, Agent, Chicago, IL
Mon Nov 3, 2008
If you can't close without the contingency, this is where to focus your attention.

Take a close look at the market and what you are asking for your home. You best position to the seller of the home you want, is that you have a contingency, but are reasonably priced and expect to sell.

Regarding your offer price. Work with your agent to determine fair market value on the property from the comparables. If it's truly the house you want, put you highest and best offer on the table.

It's always complicated when you have a contingency, but rest assured, these deals happen every day. If you do everything you can to get the property, you will have less regrets if it doesn't work out.

Best of Luck.
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James Gordon…, Agent, Hamilton, OH
Mon Nov 3, 2008
Mike ask yourself the same quetion.
If someone made an offer on your home at 90% of what it is listed at and told you that they could not set a date to buy your home.
That they had to wait until their home sold to be able to close on yours.
That they did not have an accepted offer but their home is on the market.
How would you react to that offer knowing that you want to move now?
Web Reference:  http://www.Find1Home.com
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