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I just accepted an offer on my house. And, in the end not one offer (of the 10+) had a home sale contingency. Every offer, but one, was well over asking. Most offers requested an inspection, but for informational purposes only and the right to walk away. And several offers agreed to make-up any difference between the sales price and the appraised price. I wouldn’t have even considered an offer with a home sale contingency. The same way I didn’t consider any offers with FHA financing or any conventional loan that only put down only 5%.
So, at least in my Midwestern city at the lower price points (probably under 750k or so), a home sale contingency is a no go. However, the city where I am moving to you can still buy contingent on the sale of your existing home, but it’s harder.
None of your 10+ offers were FHA or conventional 5% down?
None of your 10+ offers were FHA or conventional 5% down?
Yes, I got two offers with FHA financing, and one which was conventional putting down 5%. They were never in the running. I wouldn’t have considered FHA under almost any circumstance as the FHA appraisal often provides an extra list of things to do for the seller in order for the loan to be funded. And given how much houses are selling over asking, I was only willing to consider buyers who either had a large enough down payment or were willing to cover the short fall in the appraisal value to the sales price.
In a normal market a sales contingency or an FHA loan, while not my first choice wouldn’t be the end of the world. But, the reality is I had 10+ offers, so I had the luxury to be picky (I was hoping for 2-3 offers). And, from my perspective I have an average cookie cutter house in a cookie cutter Midwest suburb, and if this is the way the market is for a home like mine, then I can’t imagine what it’s like in even more competitive markets. So to me a home sale contingency is pretty much a no-go.
In Tarrant County, DFW market
Seeing more houses posted on Realtor.com showing contingency
Don’t know if because more homes on market in last 2 wks-which there are- of it mortgage rates are making difference
In Tarrant County, DFW market
Seeing more houses posted on Realtor.com showing contingency
Don’t know if because more homes on market in last 2 wks-which there are- of it mortgage rates are making difference
in your case, realtor.com is just noting that the houses are under contract (pending/contingent all kind of interchange depending on the site), not that the sale is contingent on another house having to be sold
Then why are some listed as “pending” and some “contingent”
I believe sometimes an agent will indicate “contingent” when the house is in the option period - usually up to seven days while the buyer is having the house inspected. We are in the middle of selling our condo in Dallas and the buyer just released the option period and the place has moved from contingent to pending.
Then why are some listed as “pending” and some “contingent”
Different MLSs have different rules on listing status.
In the Triangle MLS, in NC, where I am and according to MLS rules, "Contingent" means "Under Contract and available to be shown," perhaps for backup offers or market comparisons.
"Pending" means "Under Contract and cannot be shown."
That is the only formal, official difference to affect consumers and agents.
Then it gets goofy......
Some untrained or unsupervised agents don't know how to properly use those two MLS statuses, and apply different meanings, including getting inspections or appraisals or negotiating condition or whatever. And, they or the sellers deny showing requests while in "Contingent" status.
So that poor training and execution confuses agents and consumers who think they should be able to view homes that are in "Contingent" status, when the owners shoot down all showing requests.
Regardless, never forget that different MLSs have and enforce different rules and guidelines.
I believe sometimes an agent will indicate “contingent” when the house is in the option period - usually up to seven days while the buyer is having the house inspected. We are in the middle of selling our condo in Dallas and the buyer just released the option period and the place has moved from contingent to pending.
Good point.
Either way, it can be assumed that the property is under contract with either.
I believe sometimes an agent will indicate “contingent” when the house is in the option period - usually up to seven days while the buyer is having the house inspected. We are in the middle of selling our condo in Dallas and the buyer just released the option period and the place has moved from contingent to pending.
I considered that because standby offers can still be made if things fall through during the inspection period
Either way, it can be assumed that the property is under contract with either.
RM
In TX a property is not under contract if there is an inspection period...
It can often still receive standby offers
Only after the inspection period has concluded w/satisfactory results to both sides will the sales contract go into force...
So if the inspection reveals issues and the buyers and sellers can’t reach agreement the sale does not go forward
Sometime in hot market buyers will put house under offer just to give themselves more time to search and if they like another house they find in that inspection period will just drop first house after inspection period
Inspection proffer usually calls for smaller fee that will be lost if they do not go forward
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