Special offer

What's Worse Than A Noose Around Your Neck? A Noose Around Your Money!

By
Services for Real Estate Pros with RE/MAX Executive Realty - Happily Retired 104763

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!!!

Posted by

 

 

Barbara Todaro, Great Grandmother to Caleb, Santino, Aiden and Gianni       

Todaro Team - Retired

508-918-9148

               

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Comments(48)

Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Barbara, 

In today's market, the appraisal is a key issue.  There are far too many "ifs" in the scenario presented. For the Seller's sake, I also hope the agent is being honest.

Sep 12, 2012 09:29 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Sharon.... we will soon see what results.... I hope we get a phone call from this seller that they did not take the deal.....

Sep 12, 2012 09:31 AM
Tatyana Makarov
Century 21 All Points Realty - South Windsor, CT
Your Greater Hartford Area Realtor

I agree with you , Barbara,

condo? Nothing worse in today's market.

Have a great week.

Sep 12, 2012 10:00 AM
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.
Calling a contingency contract a domino effect is one of the best descriptors of that entire process.
Sep 12, 2012 10:34 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Barbara

That's a tough spot to be in but the agent really should do the right thing and advise the clients just as you have regarding the risks, especially with the condo sale. FHA approvals around here are particular tough in many communities.

And the sellers are in a pickle because of the other mortgage. You say the Buyer's Agent will be writing up an offer but perhaps that will never materialize and the whole matter will be moot. Keep us posted. Wishing you the best of luck on a new listing.

Jeff.

Sep 12, 2012 11:16 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Domino sales are so frustrating as so much needs to fall into place just right. It would all be representative of the market in an area, if it's a tight buyer's market, it could be just a waste of time and not a good deal for the original seller.

Sep 12, 2012 11:41 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County
I love all of your analogies--a crap shoot, a roll of the dice, a noose around the neck (or the money). It's a clever way to hold the transaction hostage, but let's hope that they do not.
Sep 12, 2012 01:16 PM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Barbara, this is the type of situation that can create madness with Buyer, listing agent, seller and anyone else in target range. Potentially a nightmare - hope not, but you know.

Sharon

Sep 12, 2012 01:31 PM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa
He extended the listing yet the seller claims that they did not agree to an extension? Something fishy there..someone is being duped or perhaps the seller signed something without realizing it. Uh oh. Keep us posted.
Sep 12, 2012 02:07 PM
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Barbara, interesting situation that smells fishy.  Is the seller going to include a 72-hour release clause in a counter offer?   They should.  In that case the listing still expires (unless the seller signs an extension), so you could still re-list it and try to find a non-contingent buyer to bump the condo folks out.  When the market is hot, as it is now in Silicon Valley, sellers won't accept contingent offers even with a 72-hour release clause.

Sep 12, 2012 02:28 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Barbara - FHA and condos are not much fun, and I do understand the concerns you have for this seller.

Sep 12, 2012 03:25 PM
Nancy Laswick
United Real Estate - Phoenix, AZ
Your REALTOR® For The Valley Of The Sun

Hi Barbara, the dictionary definition pretty much tells the story for the seller, "A future event or circumstance that is possible but cannot be predicted with certainty". In my opinion "Contingent Upon" in our current market should be avoided like the plague.

Sep 12, 2012 05:44 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Barbara, what a great post and so true of what is happening out there...I had an offer on the table when an agent talked to the sellers daughter & brought a potential buyer in & yes they were 'interested' in the house but they didn't even have their house on the market yet!  That is an empty bag too...my seller decided on the one who didn't need to sell their home..a clean deal..explaining it & being honest in a transaction is a must.

Sep 12, 2012 08:39 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Barbara, Good luck. It is geeting difficult to sell a resale condo . It is not enough for the condo to be fha or fannie mae approved. I have had problems where the condo questionnaire killed the deal because of delinquencies or investor ratios,

Sep 12, 2012 08:56 PM
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

If I were that seller, I would have a lot of questions about the contingent offer.  But I am wondering if the listing agent is encouraging them to ask the right questions or if they are selectively discussing the various aspects of the offer.

Sep 12, 2012 10:12 PM
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Barbara  Like you, I will not post date a listing that is currently active with another firm.  The sad truth is too many agents will push the seller to accept a contract that is self serving.  Didn't used to be that way when Arthur and I were licensed 36 years ago

Sep 12, 2012 10:21 PM
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

GOOD MORNING BARBARA!  I hope that agent is honest too!  I've done the same as Brian above - with the other home already being under contract and through inspections. In general though - it's not the best situation for a seller.

Sep 12, 2012 10:45 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Your title of the post triggered my funny bone.....Both can become a nuisance  NOOSE SANCE...Barbara...I couldn't resist and I know you allow this

Sep 13, 2012 01:50 AM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Is all about control ..

why pass that control to a condo that may never sell. . just because your listing agent can't do their job?

 

 

Sep 13, 2012 03:12 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Barbara,  It's as if you can smell the desperation ! 

Sep 13, 2012 04:25 AM