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.
It is a contingency and very common. People do it because they want their house to sell. Not sure how many showings you are getting but most people are happy with any decent offer.
You can always continue to show your home and get back-up offers, even without this contingency. Many listing agents don't actively solicit another buyer once they have an accepted offer.
With their transaction being in escrow, you should investigate how long it has been in escrow and the status and likelihood of it's closing. I've done that before after having secured the agents permission to speak with the escrow agent on the junior transaction. Also find out if their buyers inspection period has expired yet. If you like everything else about the offer and if you feel that your local market is weak, I'd say go ahead and take the offer. If your market is good enough that you've got some confidence of another offer coming in the next 6 weeks, then maybe you can pass this one by.
Good luck
This is a common contingency and I think this rewponse is well balanced, especially in this market. Your agent should be able to evaluate the risks of the suborndinate transaction with an emphasis on any and all contingencies associated with it. Is the house listed? Is it under contract? Has it been inspected? Has financing been approved?
It sounds like I'm the buyer. I sold my home and will close in 6 weeks. 3 days after closing to sell, I'm closing to buy. I put a contingency clause on my purchase contract to protect myself. I can't own two properties and more importantly, the bank will not approve another loan. Luckily, my sales contract is non-contingent and it's moving along well. I had to convince the seller that I can close my home. But I agreed that the seller can show her house to get back up offers. I don't understand why you can't. Your agent should have thought of this.
Does the buyer have a contingent contract of selling his property? I hope not.
But in a standard contingency clause, can't I continue to show the house and if I get an offer, then they have to make a decision or lose the house? In this case, I have to take the house off the market for 6 weeks and wait and hope that they close. I like the idea of writing in the contract that I can continue to show the house but my agent said that I couldn't do that at this point. I'm not sure why.
I believe you are talking about two different things unless they hand wrote it differently on the contract. A sale contigent on them selling their home does not stop you from showing the home. You can still take back up offers.
A sale with a contingency clause AND a kick out clause allows you to show the home and if another contract comes in that you want to take comes in then you can give them a certain period of time (24-72 hrs) to remove the contingency & make their deposit non-refundable or be released.
What does the clause they put in there say?
I too would be asking to see the contract they have and any paperwork pertaining to it, as well as making sure the contingencies on that contract have been satisfied.
Counter with your own contingencies. For instance, you can ask that you rent your house back for a couple of weeks (or month) after closing. That way you don't have to pack up before closing. You can move after closing.
At least their old house is under contact. Lots of folks ask for the contingincy based on whether or not their old house sells (not even under contract yet)
I don't understand why you can add in back up offers on your own contingency as well.
If your area is getting sales and if you have been on the market for a while with no taker and if these folks are offering a decent price for you home, I would think about it.
Good luck!
Quote:
Originally Posted by Lizzie007
Believe me, i know we are lucky to be getting offers in this market but check out this and tell me if you've ever heard this before. We got an offer from a couple who sold a house and are closing on it in 6 weeks. They want to put a clause in the contract that says that if for some reason that closing does not happen...our contract would be null and void. How could we possibly do that? That would mean that we would have to take our house off the market, pack our things, get ready to move out and then if their deal falls apart at the last second, we'd be left with nothing. It's not even a contingency deal because at least then we'd still be able to show our house and get another offer. Has anyone heard of such a thing? Who would agree to that clause?
well, it's not that we can't continue to show it if that were the case. our realtor explained last night that once we accepted their offer with this clause and their agreement that w can continue to show, then our house would still have to be listed as 'on deposit' status in MLS. then the chances of us getting any showings are slim to none - no one is interested in looking at house that is "taken." and she thinks it's a bad idea to lose all of april and part of may for something that may not pan out. we have had about 25 showings in 33 days and she advises that this risk is not worth taking with the possibility of losing the sprin market buyers who are just starting to come out. we don't need to move until sept 1 and would need temporary housing for any cosing date before then. what would you do?
This is a standard clause, and one that you should entertain. We had one on a new condo.
A young couple made us an offer, and we correspondingly made an offer on a new place. Everything was going fine until the "buyers" dropped their offer by $30K 2 days before closing - and ended up walking out on the deal after a very VERY stressful two weeks. If we hadn't had the contingency, we'd have had two mortgages!
In this market, with these kind of tactics, you can't blame them for protecting themselves. Just make sure that you have enough time to pack, move, etc once they close. Make SURE that YOU get the same clause when you make your next offer.
well, it's not that we can't continue to show it if that were the case. our realtor explained last night that once we accepted their offer with this clause and their agreement that w can continue to show, then our house would still have to be listed as 'on deposit' status in MLS. then the chances of us getting any showings are slim to none - no one is interested in looking at house that is "taken." and she thinks it's a bad idea to lose all of april and part of may for something that may not pan out. we have had about 25 showings in 33 days and she advises that this risk is not worth taking with the possibility of losing the sprin market buyers who are just starting to come out. we don't need to move until sept 1 and would need temporary housing for any cosing date before then. what would you do?
So your realtor advised you to not take their offer?
Seriously, in this market does your realtor think you will get a better offer? Are you willing to risk losing this buyer in the hopes of catching another one that doesn't need a contingency?
So your realtor advised you to not take their offer?
Seriously, in this market does your realtor think you will get a better offer? Are you willing to risk losing this buyer in the hopes of catching another one that doesn't need a contingency?
I agree. You have a bird in the hand. Does she want you to let it go because there MAY be two in the bush? That is a risk, is she willing to back up that risk with her own money? You've had 25 showings, but only 1 offer.
The contingency sounds good. Investigate the buyers as you need to, but I wouldn't be too flippant about the possibility of a sale.
there is also the issue that the money is way too low at this point, and we are not being stingy about the money. but they don't even want to talk about the money yet because they are so hellbent on the clause. we priced our house appropriately to reflect the changes in the market vs comparable house sales on my street last year. this couple has also made two verbal offers on other properties in our town and were rejected for being way to low.
we are just trying to negotiate out the clause. there is always risk involved in real estate and they are asking us to take 100% of the risk. if their deal bombs, we are the ones left with nothing - we can't even keep a penny of the down payment and we've lost the opportunity of the spring market. houses in my town have been averaging sale times of about 55 days the last 6 months. i am confident that since we have 5 more months to sell it, and it is priced right that it will go if i pass on this....i would just rather stick a fork in it and be done now.
we have talked to other realtors including the president of the realtor association of our city. they all agree that this is something that is not common in our area at all and they were all very surprised.
we are considering it and we do appreciate the feedback. so thanks! i'll let you know what happens.
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.
