Some areas around us are a little slower than usual, so it is not unusual to receive a call from an agent who has a very hopeful buyer who has a home to sell.
A contingency for settlement, provided all the contingencies have been satisfied, is not unheard of, particularly when the market is not exactly blazing hot.
An offer with a contingency for settlement, can be a perfect opportunity for a home seller to get under contract when there are no other offers pending, especially when the showings are few and far between, or even practically non existent.
After all, someone is right in front of you who WANTS your home.
So, what is a home seller to do?
- First of all, your agent will confirm the contingencies on the house your prospective buyers are selling is, indeed, free of contingencies;
- Your agent will also talk to the buyers' loan officer, confirming again they are financially well qualified to buy your home, provided they settle on their home first.
What happens, though, if the buyer wants a sale of home contingency?
Well, that's a little trickier. Actually, a lot trickier. In a robust market, home sellers typically do not need to take an offer with a sale of home contingency because odds are good they will get an offer without one.
If the market is slower, though, the seller has to consider it may also be slower for the property their prospective buyers are trying to sell, so does it make sense to take the "bird in hand" or wait it out?
In order to make that decision, your agent will evaluate the property the buyers are trying to sell. Some things an agent looks at includes:
- How long it has been on the market;
- How well it is priced. Yes, we will do a CMA in order to compare it to its competition;
- How well it shows. First of all, we'll take a look at the online presence of the listing, reviewing the photos, the marketing, etc. Then we'll go take a look at the property and see if it is fairly represented online. Bad photos and lack of marketing do not bode well for acceptance of the offer with a sale of home contingency.
Of course, the price and other terms of the offer are just as important as always. And, as a listing agent, I always insist the home inspection and appraisal are done quickly, and not dependent on the buyer's home sale.
So, while a contingency for sale of home is always groan-worthy when an offer comes in on a listing, sometimes it may well be the right situation for all parties involved.
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