Last week, we were asked to do a listing presentation on a single family home while it was listed with another agent. It was soon to expire. We did a full presentation, and the homeowner was going to list with us. We never post date an agreement. We wait until the listing expires to have an agreement signed.
The listing agent did a final open house and we would get a call after the open house. Another agent with a buyer showed the home and there’s interest. The buyer's agent will be writing up an offer, but the buyer has a condo to sell and the offer will be contingent upon that condo selling. That’s an empty bag!!
I hope the seller will not be entertaining this offer and the listing agent will not be promoting the offer in order to maintain that listing. There are a number of negative scenarios that can result from this situation. The condo listing could be overpriced and not sell; the condo listing could have a buyer with something to sell creating a domino effect; the condo listing might not appraise and then the buyers can’t afford to buy; or there could be a clean deal and everything could close.
It’s a roll of the dice; it’s a crap shoot, for sure, and the odds are not in favor of the single family homeowner. There are too many factors that work against any seller taking a contingency today. There are enough problems with clean deals closing to have to worry about a condo sale contingency.
Let’s hope the condo is FHA approved for the seller’s sake; but more importantly, let’s hope the listing agent acts in good faith and is honest with that homeowner!!! The homeowner has purchased another home. It’s now a noose around the homeowner's bank account!!!