Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I am a newly minted Realtor and am working with a couple from out of state. They really like one house (at least on paper), but are stymied by the contigency that the seller must find suitable housing. Is this uncommon?
I see that contingency a lot - basically it just means the seller wants to move but doesn't want to fall in love with another home until theirs is under contract. Typically the closing date will be set so as to allow time for them to find their new house and get moving into it so the new buyer can move into their home. If you were to make an offer on their house, I would put in a contingency for a time frame for them to find and have an offer agreed upon for the seller's new house within 10 days or so...Depends on whether they're staying local or moving out of the area. I'm sure the sellers are looking at homes, just like your buyers are and know what they've got their eyes on, too. Good luck!
I've never seen such a contingency. If the seller is moving, why doesn't he/she put an offer on another home contingent upon the sale of their current home? It's a weaker position, but he/she can also do it after their home is under contract and then the contingency would be pending successful closing of home. The worse that can happen is that the seller has to put his/her belongings in storage temporarily if they don't have a dream home within a specific timeframe. The contingency as stated would be a disincentive for someone buying a home from out-of-town where you are working within a specific timeframe.
I am a newly minted Realtor and am working with a couple from out of state. They really like one house (at least on paper), but are stymied by the contigency that the seller must find suitable housing. Is this uncommon?
Jo
Yes this is uncommon. Without a specific time-frame indicated, the buyers are in limbo.
Like another reply stated, put a counter-contingency in the offer that once the offer is accepted that: the seller will vacate the premises AND be ready to close within a certain period of time (4-8 weeks is not unreasonable - the seller should not require more time then this - 4 weeks is in fact what I would shoot for).
I see that contingency a lot - basically it just means the seller wants to move but doesn't want to fall in love with another home until theirs is under contract. Typically the closing date will be set so as to allow time for them to find their new house and get moving into it so the new buyer can move into their home. If you were to make an offer on their house, I would put in a contingency for a time frame for them to find and have an offer agreed upon for the seller's new house within 10 days or so...Depends on whether they're staying local or moving out of the area. I'm sure the sellers are looking at homes, just like your buyers are and know what they've got their eyes on, too. Good luck!
Around here that contingency is common too. For the buyers, we try to have commencement of the inspection period start when the seller's contingency is waived or satisfied, in writing of course. You need to know your contract.
As for the seller's, having a signed contract on their house makes them a stronger buyer. Not too many sellers want to go to contract with a house sale contingent buyer who doesn't have a buyer for their own house. If you were selling your house, would you prefer to go to contract with a person who had a house to sell and had a buyer or the person who had a house to sell and still looking for a buyer?
As for the seller's, having a signed contract on their house makes them a stronger buyer. Not too many sellers want to go to contract with a house sale contingent buyer who doesn't have a buyer for their own house. If you were selling your house, would you prefer to go to contract with a person who had a house to sell and had a buyer or the person who had a house to sell and still looking for a buyer?
I completely agree that the seller's position is strengthened when he/she puts an offer another home after the house is under contract or even sold, so why drag the process while trying to sell the home by having a contingency of finding suitable housing?
I completely agree that the seller's position is strengthened when he/she puts an offer another home after the house is under contract or even sold, so why drag the process while trying to sell the home by having a contingency of finding suitable housing?
I would call the list agent...s/he may be able to give info as to what the sellers are looking for property-wise and maybe even tell you what they have already turned down offer-wise.
We are also looking, but don't have our place for sale because I know we may not find the sf we want for the price range we are in. If we do, we will make an offer cont on selling first. Either way is not uncommon in our locale.
I completely agree that the seller's position is strengthened when he/she puts an offer another home after the house is under contract or even sold, so why drag the process while trying to sell the home by having a contingency of finding suitable housing?
It is a mistake - a direct result of poor legal advice. The quick quip answer is "to have control" - but the reality is that the person who represents the sellers should've pointed out how bizarrely unconventional the contingency is. Of course there should be a specific time-frame not a generic phrase regarding "after finding suitable housing" - that is just bizarre and leads me to believe the sellers may not even really want to move (they want to explore their options around the area, and take their time, and perhaps even change their mind ...LOL, like that's something reasonable for serious buyers ). They're instead speculative sellers; and that's just a waste of everyone's time.
The more I think about this the more I'm inclined to say that the sellers need to be pinned down for a specific time-frame to move out after accepting the offer - I'd say contact them immediately and explain the case - that indeed they will lose the sale to not only current serious buyers, but future potential buyers as well. If they want 8 weeks, then that's a long time, but at least it's a real timeframe with an end in sight. Your clients could feel good knowing that in 8 weeks the house they want will likely be their's.
but the reality is that the person who represents the sellers should've pointed out how bizarrely unconventional the contingency is.
How true. In most cases the agent representing the seller was just happy they got the seller to sign the listing agreement in the first place. Now there's a skilled negotiator for you! It's really not a good practice to have a clear cut out for your seller. The sellers have to be ready, willing and able to sell if I am going to find a ready, willing and able buyer.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A question to the question...
). They're instead speculative sellers; and that's just a waste of everyone's time. 
