Most agents selling real
estate in the last 10 years has received a “contingent on the sale
of other property” contract at one point or another. Is it good or
bad for your seller client?
Like everything else in a
negotiation it just depends on what the property being sold is, How
it is priced compared to the market conditions and the terms that are
offering.
FACT – The majority of
consumers looking to buy a new home will need to sell an existing
property to access equity and reduce Loan to Value ratios in order to
qualify for a new mortgage. Of course there are exceptions to that
statement. Buyers with Cash, someone who may own an existing property
outright but most people will need to sell one home to buy another.
So it all comes down to
TIMIMG
I urge my clients to look at
the offer they receive 1st and once they address any terms
that need addressing but before there is a response, then look at the
contingent property.
This requires a little more
cooperation from the buyer and his/her agent. Once a consumer has
found a home they want to buy they tend to get pretty serious about
getting their property sold. If the property is one the market and
they have an offer that is past the option periods then it is still
considered contingent but it is a little stronger than maybe
something that is not on the market, not ready for the market and is
going to be priced too high for quick contract.
Each situation is unique and
I think contingency offers need to weighed just as seriously as non
contingent offers. Is there risk for a seller to take a contingent
offer? Yes. What if the contingent home does not close on time? You
would have signaled to the market that you have a contract on the
property but a contingency and it may be dismissed by some other
potential buyers. Are there benefits for the seller ? Yes typically
you can be a little firmer on price that with someone who may think
they can discount you property if paying cash or other favorable
terms.
So I would always suggest
that the offer be considered as serious as any other offer and treat
it was much respect. In 13 years as an Agent I have had only 1
Continent deal fall through and it was a client who was not very
honest about the sale of their property. Other than that I have
concluded several contingent contracts successfully and when a buyer
is in that position I have learned that the presentation of the
offer, terms and status of their home sale if handled correctly can
be a positive for the selling client.
Let me know if you have any
questions. I appreciate your referrals!!
Send questions to
Mobile/Text: 512-922-4922
Regards,
Bob Kenney, Realtor®
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