Contingency sale offer or not? That is the question.

Wanda, it depends on the market, but accepting the contingency with a kick out clause often works.

Hi Wanda, We simply don't make or take fully contingent offers. If the buyer's house is already under a solid contract yes it is done regularly. There are special circumstances But as a rule, no.

So far, I've only done two Contingency deals. On the one that I thought would be an issue, their property sold in less than two weeks. On the other, the Buyers had an Option, but after some financial juggling, found they could bypass it and take the house anyway.

I write "no notice" contingency offers if the buyer wants and it is the only kind I would consider recommending to a seller.  

This way, the buyer knows what they will pay for a home and can make a better decision on accepting an offer on their home.  For the seller, the home is not marked pending and the home is still active on the market and they can accept any other offer at any time.

If buyers already have a contract on their home and it has passed the contract contingencies, then a contingency offer might be favorably considered by sellers.  In the Houston market today, well priced properties that show well are selling very quickly and many times with multiple offers so it's unlikely a contingency offer would be accepted.  That said -- it's always up to the buyer and seller.

Wanda:  I cannot remember the last time I recommended a seller take an offer that was contingent upon the buyer selling their home.  It ties the seller's hands, and the chances of it harming the seller are too great.  IF the seller takes a contingent purchase offer, they cannot go out and purchase anything... as they have a double-anchor around their neck.

Also, accepting a contingent offer will absolutely KILL the likelihood of any Realtor showing my seller's home to their non-contingent buyer.

As far as recommending a buyer to make an offer on a home that then gives the seller a sixty-day (or whatever) time period to find a suitable home... my buyers will follow my recommendations 99% of the time, and I am against doing that.

Again... both options are like "kissing your sister."  They don't go anywhere!

Doesn't it really depend upon where the buyer is in the sale of their home? If they've just listed it, that's one thing. But if there's a sale in progress with buyers who are approved, that's another thing.

This is another area in which the experienced Realtor proves her value. The are some situations appropriate for this, and some that are not.

Timely post and reminder to those that hope things happen instead of making things happen with a timely and fearless business plan. 

Hi Wanda,

I agree with your comments.  I think the buyer should market their home first before looking for a new home.  Then they could tell the buyer of their home that the sell of their home is contingency upon them finding a replacement home. 

I won't write one. The buyers don't really understand what it entails. Most sellers in my area have not accepted them for years now. 

I'm with Barbara (23) when its a new listing most most sellers won't buy into it, but if it has been on the market awhile, sellers are more liable to take a chance on "something" rather than nothing. All depends on how anxious the sellers is. At the request of the sellers, usually we do not put it in the MLS as under contract so agents will continue to show and potentially bring a better offer. A lot would be based on state law, I guess. In North Carolina, unless it is illegal, agents are to follow the direction of the sellers.

Hi Wanda, we do not take contingent offers unless buyers house is under contract and all their contingencies met.

Bob in #39:  I would not call that a "contingent" sale.  I have always referred to that as a "subject to" sale... as in "this contract is subject to the completion of the sale of 123 Penny Lane.  This home is under contract and in escrow."

I realize that every state is different, and even some areas inside each state may be different... but this works for me in Fort Worth, Texas.

Wanda I would tend to agree that unless your buyer's home has an offer on it or is uncer contract then I would not make a big push to write an offer on another home. I do think it does take some of the leverage away from your buyer.

not in this market ... sell first and than look .... make your offer the strongest in the field and you will get what you want ... 

In this market that is especially good advise.  Why wait for someone elses sale when there is another buyer right around the corner.

 Wanda: Thanks for asking the question re: contingent offers. The practice varies so often in different areas. I personally have discouraged the practice of the sellers accepting them and Buyers making them. I usually explain my professional, experienced advice by sharing true stories that have caused extreme pain and difficulties financially and emotionally. It is their right to ask you to handle the paperwork, but they seldom go forward. Get the house sold first is my motto and then the buyer is in a strong position to get the best value, and the seller has confidence that this a real buyer, and everyone can move on with their lives.