Now that the market has been correcting in our areas of Cranford, Westfield, Berkeley Heights NJ, I have had more buyers wanting to put a home sale contingency on their offer, and more sellers are willing to at least hold our offer in consideration, even if it means they keep showing the house.
What I am wondering is how other markets are handling this chicken/egg issue of having to sell before buying. I am advising all of my clients in this position now to list their homes first whenver possible, because there is plenty of inventory to choose from. 2 years ago, when there were 3 buyers for every house, and it was easy to sell, we could make an offer with no contingency, carry two loans for a month, and feel confident that our listing would sell with multiple offers in less than a week.
In the higher price ranges (500K and up), I think contingency offers have a better chance of coming to fruition (less first time buyers, more funds needed to close), but there is still that level of uneasiness from my buyers when we have such an offer on the table, because the fear of losing the house is still rearing its ugly head.
Some ways I have submitted contingencies are:
1. Request a 48 hour right of first refusal for my buyers to strengthen their offer if another bona-fide offer is presented with better terms to the seller
2. Put an expiration date on the contingency at which time the sellers can cancel the contract if the contingency isn't lifted.
As always, I look forward to reading your comments. Thanks for reading!
Sean Carroll - Realtor
RE/MAX Classic Group
Your Neighborhood Expert for Cranford, Westfield, Berkeley Heights NJ and Surrounding Towns
http://www.CranfordHomesOnline.com
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