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Got an offer...but it is a "if we sell ours, we buy yours" one...and I am not sure whether I should take that.
What are your views? Would you? The offer is lower than the asking price, and I would normally negotiate...but the fact that it IS a contingency offer is making me really hesitate.
Alot of times when people accept a contingency offer, the property does NOT come off the market, and the contract stipulates that in the event you receive a non contingent offer the first buyers may either remove the contingency or you are free to accept the second offer. This way you are protected and free to continue shopping your property until such time as the contingency has been met.
without terms such as this I would not accept a contingent offer. The contingency may never be met and you have lost time for nothing.
Alot of times when people accept a contingency offer, the property does NOT come off the market, and the contract stipulates that in the event you receive a non contingent offer the first buyers may either remove the contingency or you are free to accept the second offer. This way you are protected and free to continue shopping your property until such time as the contingency has been met.
without terms such as this I would not accept a contingent offer. The contingency may never be met and you have lost time for nothing.
hmm...that is not bad. I think I like that. Thanks, Codyhopkins.
I would have to evaluate the situation. How long has your house been on the market? Just listed or has it been a long time? How long has the buyer had their home on the market. It is listed already right? Is it priced competetively? Is it in a neighborhood where homes are moving? Is the buyer trying to sell local or are they out of state in a market that is struggling big time?
Recognize the fact that a home can be broadly considered "Off the Market" even if it is not taken "Off the Market."
If people won't look at a "Contingent" home then, de facto, it is "Off the Market."
I do not set automatic MLS searches to show "Contingent" homes. Most people do not want to get involved in a property that someone else has under contract.
I would be much more comfortable with a contingency on closing rather than a contingency on selling.
Got an offer...but it is a "if we sell ours, we buy yours" one...and I am not sure whether I should take that.
What are your views? Would you? The offer is lower than the asking price, and I would normally negotiate...but the fact that it IS a contingency offer is making me really hesitate.
Any ideas, opinions?
D
I sure hope you have a Realtor because you are getting into alot of "it depends".
I am seeing tons of homes selling that are under $200,000. First time homebuyers are really taking note of the $8,000 tax credit. So...if your home is in great condition and in a desireable n'hood and in this price range, I probably would not accept that contingency.
If your home is less than desirable and the buyers old home is more desirable, I would consider the contingency if I had my Realtor do the research to see the average days on market for that n'hood.
In order to accept that contingency, I'd EXPECT the buyers would pay FULL PRICE or pretty close to it. They are asking you to take your home off the market (most Agents won't show a contingent house) and while you are waiting for their house to sell, you are losing out on the best time of year to sell a house.
Recognize the fact that a home can be broadly considered "Off the Market" even if it is not taken "Off the Market."
If people won't look at a "Contingent" home then, de facto, it is "Off the Market."
I do not set automatic MLS searches to show "Contingent" homes. Most people do not want to get involved in a property that someone else has under contract.
I would be much more comfortable with a contingency on closing rather than a contingency on selling.
Ditto what Mike and Vickie said. Sorry Mike, gotta spread the rep first.
#1 I've always crossed out homes under contract from my list of to see listings. I know things can fall through but that is a big if and I wouldn't want to sit around thinking "How nice it would have been to get that one". I'd only view an under contract home if it was in a neighborhood I had never seen a home in and I was already in the vicinity looking at other homes.
#2 I'd except a contingency on CLOSING if the offer was strong/solid for my home (from dates to financing). Accepting an offer for the other party to sell is way too much of a headache for me. It is enough to stress and worry about the appearance, showings, and every other aspect of your OWN listing, I certainly wouldn't take on the burden of worrying about it for someone else's. I know what kind of seller I am and what kind of agents I have working for me, I don't know these facts about anyone else!
* What do you mean by "I would be much more comfortable with a contingency on closing rather than a contingency on selling"?
* Mike and some of you said that you would hesitate to show a house that is under contract. But, how would agents know the house is under a contingent offer during the first showing? For peace of mind, I can accept this offer, with the clause in there that I can sell if another offer comes by without a contingency...and still show the house? But I don't want to do that IF it jeopardizes other views.
* Our house has been on the market for less than a week and we already had 2 offers. Granted one was a lowball offer ( 30K less than the asking price) and then, this one. It is in a good neighborhood, so I am hoping we will get some more movement on it.
* What do you mean by "I would be much more comfortable with a contingency on closing rather than a contingency on selling"?
* Mike and some of you said that you would hesitate to show a house that is under contract. But, how would agents know the house is under a contingent offer during the first showing? For peace of mind, I can accept this offer, with the clause in there that I can sell if another offer comes by without a contingency...and still show the house? But I don't want to do that IF it jeopardizes other views.
* Our house has been on the market for less than a week and we already had 2 offers. Granted one was a lowball offer ( 30K less than the asking price) and then, this one. It is in a good neighborhood, so I am hoping we will get some more movement on it.
Thanks,
D
We would not know if you have a contingent offer unless you told us.
But, if you accept that contingent offer, it would no longer be an offer. It will be a contract, and the MLS Status must be changed to "Contingent" to reflect the fact that the property is under contract.
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