Love to hear what agents think... (contract, listing, sellers, MLS)

[jimj]

About a potential buyer. This buyer likes our house but has one to sell first. My agent is advising not to take a contingent offer because he says in a buyers market if a house shows a 72 hour right to refusal in the listing the other agents won't show it since there's lots of inventory. While I'd love to get an offer I don't want to be stuck through the prime selling season with no other showings and then have theirs not sell. Theirs is not listed yet and if it's priced right when they list I guess I'd be less leary about the contingent offer. We've been listed for 8 months now, no showings for the last 3 since it's a flat market in our price range. I've thought the bird in the hand thing and all but don't want to miss a potential buyer chasing a maybe...
Thoughts on taking a contingent offer in this market????

[Gretchen B]

Originally Posted by jimj

About a potential buyer. This buyer likes our house but has one to sell first. My agent is advising not to take a contingent offer because he says in a buyers market if a house shows a 72 hour right to refusal in the listing the other agents won't show it since there's lots of inventory. While I'd love to get an offer I don't want to be stuck through the prime selling season with no other showings and then have theirs not sell. Theirs is not listed yet and if it's priced right when they list I guess I'd be less leary about the contingent offer. We've been listed for 8 months now, no showings for the last 3 since it's a flat market in our price range. I've thought the bird in the hand thing and all but don't want to miss a potential buyer chasing a maybe...
Thoughts on taking a contingent offer in this market????

I think your agent is giving you good advice. You all just need to be careful how you say "no thanks". Your market is slow right now but will probably be picking up with the warmer temps and no snow.

You want to let these buyers down easy and encourage them to get their home sold quickly and bring you an offer the minute it goes under contract. (There's a BIG difference between an offer "contingent on the sale" of a home that's not even on the market yet, and an offer "contingent on the successful close" of a house that has a contract on it.) If your home is still available at that point in time, bingo - you've got it sold. If their home takes as long to sell as many homes are taking right now (4-6 months+) then you will have been able to keep your home on the market and may have it sold long before they get their home sold.

Really, in slow markets, people should not be looking at purchasing their next home until they have their current home under contract. The exception would be some sort of relocation buy-out package.

I'm with your agent on this one, jimj. Keep it active on the market.

[palmcoasting]

We do modified contingencies. As in, 24 hr, not 72 hr, with right to show and not to have contingent in the mls. I've done two like that. Both got other offers and the first 'buyers' moved aside. It can also be done where the buyer puts up funds that are non-refundable if they don't follow through. I'm surprised someone is out looking when their home isn't even on the market yet. What's up with that?
But, although we've done that, I will say, I've always counseled the seller against it unless there was a contract on the buyer's home already. And, I asked to see that contract and supporting paperwork.

[Brandon Hoffman]

Heres anecdotal for you...

3 weeks ago my sellers accepted contingent and I would continue to market the home with a note in the agent remarks that it was contingent w/ 48 hours ROFR. Last weekend it went under contract to a different buyer, noncontingent, and the first buyers canceled the offer. We close in a little under 3 weeks.

There are different ways to do it. The contingent offer gave us a chance and we kept marketing. They aren't always right to take though. Could be the "We would love to consider an offer from you once your home goes under contract" scenario but as a seller you hold the cards when it's contingent. You could get a better price out of it. And the next buyer better be serious when they bring an offer knowing you've already got one on the table.

[twinmma]

Not an agent, but we had the same thing happen. THey loved the house, wanted to put an offer on it, and they were going to list theirs that week. We told them thanks, but no thanks. Our home ended up selling a month later I think...
If there home sells quickly and they truely are interested, then they can make an offer then. You have no control over thier home...what it looks like, how they price it, etc. I would bet on myself and not someone else.
I know it is so tempting to take an offer-any offer, but IMO I would hold out. That perfect buyer could be there tomorrow and be scared off b/c your home is under contract.
Good luck and hang in there. Our home took 8 months to sell. Yours will sell-eventually if you are priced right!

[jimj]

An update, my agent called and said that they want him to do a CMA on their house and tell them what to price it at. I'm guessing they're going to list with him. He and I agreed that we'd wait until we see how they price it and talk again. I do need to check and see if we can do as described above and not put the ROFR in the listing which would make me feel a little more comfortable. I don't quite get why you'd have to put it in there as long as you let someone who was considering placing an offer that one was already on the table that could be broken after xx hours.

[Gretchen B]

Just a thought - they might be a little more anxious to price their home right if they're trying to get it sold before you get an offer on yours.

In my neck o' the woods, the problem with XX hrs First Right of Refusal is that we have to change the status in MLS from "Active" to "Pending Taking Backups". With so much inventory right now, most agents will only search the "Actives" when looking for properties to show their buyers. You might want to check with your agent and see how your local MLS works. If your house still shows up as an "Active" listing, then it's really not going to matter as much as if you'd have to change it to some sort of "Pending" status.

[Brandon Hoffman]

We have active, active contingent, active cont. on inspection, pending.

Originally Posted by Gretchen B

Just a thought - they might be a little more anxious to price their home right if they're trying to get it sold before you get an offer on yours.

In my neck o' the woods, the problem with XX hrs First Right of Refusal is that we have to change the status in MLS from "Active" to "Pending Taking Backups". With so much inventory right now, most agents will only search the "Actives" when looking for properties to show their buyers. You might want to check with your agent and see how your local MLS works. If your house still shows up as an "Active" listing, then it's really not going to matter as much as if you'd have to change it to some sort of "Pending" status.

[Boomerang]

Originally Posted by Gretchen B

In my neck o' the woods, the problem with XX hrs First Right of Refusal is that we have to change the status in MLS from "Active" to "Pending Taking Backups".

I see those around here. As a buyer I don't even look at these listings, figuring it's a done deal. If not, I expect them to show up as BOM eventually.....

[oldmanbob]

All advise above is great, but the other side of the coin, what if that prospective buyer, not under contract, finds another property? So taking a contingency, probably keeps them from searching .No harm in taking a contingency, as I was involved in a sell, as my client had seen, and I warned about the 24 hour first right of refussal, and they fell in love with the house. The original could not sell, so we got the deal. So go for it.