Special offer

Will the seller take a contingent offer, subject to the buyer's sale of their home?

By
Real Estate Agent with Berkshire Hathaway HomeServices California Properties 01238708

Will the seller take a contingent offer, subject to the buyer's sale of their home?

Will the seller take a contingent offer, subject to the buyer's sale of their home? We really like this Condominium and we want to relocate to the Beach in Malibu with ocean views, rather than living in the Hollywood hills with mountain views.

I was recently asked this question; I thought I would share this with other potential buyers & potential sellers who have the same question. The answer is not a simple cut and dry yes or no. This depends on many variables:

•1.       Is the buyer's home on the Market? Is it properly marketed with the intent to sell?

•2.       How well priced is the home? How is the absorption rate in the neighborhood?

•3.       How motivated is the Seller on the property that is being considering the contingent offer?

•4.       How sellable is the Property considered for the contingent offer? What is the absorption rate on this property?

•5.       How savvy are both sellers? How savvy are both agents representing the potential purchase & sale?

These are just a few of the questions that need to be answered and then ultimately if the answers are all positive, then the likelihood of the seller accepting an Offer Contingent on the Sale of the buyer's property would be accepted.

Should you have any questions that you would like answered, please feel free to get in touch with me directly either via my mobile or e-mail whichever is more convenient.

If you are a consumer  who is considering buying  or selling  a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com  or visit one of my websites at http://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations

 

 

 

Comments (9)

Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Endre - Great question and definitely challenging scenario.  So many things to consider.  I had a transaction last year that was contingent on two other transactions that needed to happen too.  OY VEY!!!  What an ordeal!

Jan 20, 2011 09:31 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Donne I had one  that was three deals connected and one was out of state,quite  a few years ago, but still fresh in my mind, increased stress levels and I preferr not to go thru it again....

Jan 20, 2011 01:16 PM
Jane Pacheco
Pacheco Realty & Financial Services - Fremont, CA

Endre, these are very appropriate questions to ask and get answers to. Perhaps, a contingent offer also needs to have a specified time frame so as not to have an indefinite timeline.

 

Jane Pacheco

Jan 20, 2011 03:18 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jane, you are so right, many times sellers and agents forget to do that which is a key to prevent the painful agony. A very valuable point that should be included in the counter offer to the buyer.

Jan 20, 2011 04:16 PM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Endre, great blog.  Perfect questions and one that an experienced agent, when putting together a contingent offer should prepare ahead of time and present with the offer.  

Jan 20, 2011 04:17 PM
Elyse Berman, PA
LoKation Real Estate - Boca Raton, FL
Boca Raton FL (561) 716-7824

Endre,  This is a great question.  I think it also depends on the market.  I haven't had this scenario recently, but it defintitely can happen.

Jan 20, 2011 11:07 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Juli--- I agree these questions need to be asked and hopefully get some answers before the submittal of the actual offer.

Elyse--- I feel like I am in a timewarp, questions that were popular 12-15 years ago are being asked again with minor variations.

Jan 21, 2011 01:05 PM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Hi Endre, I've had this happen a couple of times, sellers are apprehensive to let a buyer go but on the other hand, they don't want to lose other opportunities in case it doesn't work out.   We added a clause that would allow the seller to accept backup offers.

Jan 25, 2011 07:05 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Silvia, what I have also seen is a 48hrs blow out cause to "perform' or 'cancellation', these are all interesting times we live in:)

Jan 25, 2011 10:51 AM