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.
My house on sale for 3 days and got a contingent offer with:
- Full asking price
- 1 mo to close (theirs will close one day before us)
- but the buyer agent put a clause on "subject to" selling of their current condo. She said it is different than "contingent"
- Their condo is in pending and their agent said inspection was just done and passed (verbally as I have not seen their signed paper)
My house is in Bellevue and their condo is literally 5min away also in Bellevue. I told my agent that I was concerned about their risk of closing which could be 1 mo waste for us to pull off the market. After a round of negotiation, they only agree to do a couple thousands of dollars earnest money to be non-refundable ONLY after inspection. My thought at that time is that if they are so confident about closing their condo, it would be "fair" to ask non-refundable of the earnest amount they received from their buyer. It was just my way of evaluating their risk, which could transfer to my risk. It is not the earnest money I am fighting for but I just wanted to gauge their confidence.
In the end, we decided not to take on that offer. It has been two weeks and so far I have not received any other offer. I heard people said the first offer is the best offer. But given the hot market in Bellevue, no offer after 2 weeks is a bit "odd" IMHO. We got no fewer than 30-40 views so far.
Did I shoot myself in the foot?
Few people told us it is too early to tell since it's just a couple weeks on market.
My house on sale for 3 days and got a contingent offer with:
- Full asking price
- 1 mo to close (theirs will close one day before us)
- but the buyer agent put a clause on "subject to" selling of their current condo. She said it is different than "contingent"
- Their condo is in pending and their agent said inspection was just done and passed (verbally as I have not seen their signed paper)
My house is in Bellevue and their condo is literally 5min away also in Bellevue. I told my agent that I was concerned about their risk of closing which could be 1 mo waste for us to pull off the market. After a round of negotiation, they only agree to do a couple thousands of dollars earnest money to be non-refundable ONLY after inspection. My thought at that time is that if they are so confident about closing their condo, it would be "fair" to ask non-refundable of the earnest amount they received from their buyer. It was just my way of evaluating their risk, which could transfer to my risk. It is not the earnest money I am fighting for but I just wanted to gauge their confidence.
In the end, we decided not to take on that offer. It has been two weeks and so far I have not received any other offer. I heard people said the first offer is the best offer. But given the hot market in Bellevue, no offer after 2 weeks is a bit "odd" IMHO. We got no fewer than 30-40 views so far.
Did I shoot myself in the foot?
Maybe.
Next time ask about accepting an offer like that with a kick-out clause that would require them to remove their "subject to" () or back out if you got another offer. If that is legal in your state.
Your agent could list it as "under contract with contingency; offers still being accepted."
Next time ask about accepting an offer like that with a kick-out clause that would require them to remove their "subject to" () or back out if you got another offer. If that is legal in your state.
Your agent could list it as "under contract with contingency; offers still being accepted."
This is what I would have done as well.
OP, has your agent reached out to the buyer's agent to see if they might still be interested?
I asked my agent about that and here is her explanation for WA State:
- The status will not show as "Pending (Contingent)" since this is "Subject to" and not "Contingent"
- The reason is their condo (buyer's condo) is in Pending now and not List
- If I accept the offer, it will go right into Pending (Inspection)
- Since there is no Contingent status, kick-out clause does not apply
So I was evaluating a risk of wasting a mo plus tiny earnest money vs. risk of receiving lower offer later. Honestly if they are in their last week of the process (post-appraisal), I would be OK and took the offer. But it was just after inspection, anything could happen.
But my house has been only 2+ weeks on market so .... I don't know!
Well, "subject to" and "contingent" are different words...but they are still synonymous as it relates to the contract.
Have your agent contact their agent again to ask how their sale is progressing. Have your agent explain that you were simply concerned about whether their sale would go through on time and that, if they are more certain now about closing, then you would now be open to a sales contract. It won't hurt to try. It sounds like there could have been enough assurances given to you previously. Oh well. Hopefully your wound isn't too severe.
P.S. I just read the other posts which were posted while I typed. Regarding "subject to" and "contingent", how it shows up on MLS does not affect the contract, which is what I was addressing.
As for contact, have your agent double-check on their home-buying status.
Last edited by jackmichigan; 04-25-2019 at 12:27 PM..
Your agent should have reached out to the other buyers agent to assess the strength of their offer to buy your buyer's condo. It might have had to go through the condo sellers/your potential buyers agent, but still. They can sometimes assess the likelihood of a deal closing based on what they "see". (I am sure the realtors here will balk at this, but that is how deals get done: talking.)
I had a deal fall apart at the last minute with financing provided by USAA. Weird that my buyer lost their qualification somehow. Well employed, etc. so don't know the details. It could happen to you, but with a kick out clause (with no increased/non-refundable binder) it wouldn't have mattered to you. Your listing would have stayed active, which is all you really want.
Now you can only go forward. Nothing in two weeks is not good, but don't get into the price cutting game for several months if it goes that long. If your listing is good (it did attract a buyer) and the property is top notch, it will sell unless the market takes a tumble. A possibility, but not likely.
Yes, usually your first real offer is your best. Saves knuckle gnashing and all that. Now you are in it for the long haul. Hang tough. Go about your business. There is really very little you can do to change the circumstances.
Well, "subject to" and "contingent" are different words...but they are still synonymous.
Have your agent contact their agent again to ask how their sale is progressing. Have your agent explain that you were simply concerned about whether their sale would go through on time and that, if they are more certain now about closing, then you would now be open to a sales contract. It won't hurt to try. It sounds like there could have been enough assurances given to you previously. Oh well. Hopefully your wound isn't too severe.
Yes, I asked my agent to check on their agent and their sale process. What I heard back was generic "it is going very well". The earnest money is my "test" of their "gut feeling" and their "closing possibility". Frankly I don't know how that idea got translated to my agent and to their agent.
I have been told there are people got in the same situation and 50% turned out fine and 50% wasted 1-2mo to be back on market with lower offer. I just don't know how likely something like this would pull through in the Bellevue, WA market.
... but with a kick out clause (with no increased/non-refundable binder) it wouldn't have mattered to you. Your listing would have stayed active, which is all you really want.
Yeah I asked about this option but was told by my agent kick-out clause won't apply since this is not "contingent" but a "subject to". I can only have kick-out clause when their listing is NOT PENDING.
That is why this decision is so hard because I have to deal with several risks: (1) their buyer ability to close, (2) their willingness to sell, and (3) their financing risk to my house. With a "straight forward" buyer, it would just be (3) that I am concerning (taking inspection and other common risks out of the equation).
If their home looks easily marketable and is already under contract, I would have advised taking the offer.
Call them, see if you can get them back now. Maybe they're still looking.
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.
) or back out if you got another offer. If that is legal in your state.
