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Home Sale Contingencies Returning to Purchase Contracts

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Real Estate Agent with Long & Foster | Christie's International Real Estate Licensed in DC, MD, VA

Buyers and Sellers Cooperating for Terms to Work

F. Hill Slowinski As the market for the purchase and sale of residential properties continues to stabilize and return to normal, we are beginning to see more sellers accepting offers to buy their homes subject to the sale of the buyers' homes, this after a period where such contingencies were few and far between.  Even though these contingencies add to the complexity of offers, this arrangement works to the benefit of both buyer and seller to seal a deal and can be very satisfying and cooperative, so long as both parties adhere to the strict details in the home sale contingency provision. 

 Attention to timelines ("Time is of the essence") and procedural requirements is critical in ensuring these arrangements succeed.   For example, buyers must have their homes listed by a broker within three days of the ratification of the contract, and at a price that is very realistic and attractive to the market.  The contract the buyer eventually receives on his home must be free of all contingencies other than financing within the specified timeframe to satisfy the home sale contingency terms.  Meanwhile, sellers are permitted to accept back-up contracts in the event the initial contract becomes void. 

 The combination and realization of these transactions will take more time since there is additional scheduling and detail coordination along with the usual process requirements of yet another transaction.  With careful planning and oversight of experienced agents, achieving the desired outcome, though, can meet the objectives of, and fulfill the dreams of, all the parties to the deals.

Posted by

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F. Hill Slowinski, JD, REALTOR® in DC, MD, and VA
W.C. & A.N. Miller Realtors, A Long & Foster Company
Christie’s International Real Estate
#9 Agent in Washington Metro Region

4701 Sangamore Road, Bethesda, Maryland  20816
Tel: 301-229-4000  Fax: 301-229-4015
Direct: 301-320-8430 · Cell: 301-452-1409
Email:  Hill@LNF.com

HOMES WORTH BUYING ™

 

Comments(6)

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Carolyn Kolba
Serving Mentor, and all of Lake County, Ohio - Mentor, OH
Keller Williams Realty- Mentor, Ohio

Hill, it sounds like you are very high on having sellers accept contingencies, but I just cannot agree with you if the seller's home in question is at all likely to attract another buyer.  I have seen many times when I myself will absolutely not show a seller's home when it has a contingency on the sale of another buyers home on it.  It just kills the showings.

I only would recommend that the seller do this... if the home has been on the market for months and months, without having had any credible offers.  Just my thoughts.

Jul 17, 2010 11:42 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I agree many buyers do not like to see houses where there is a contingency .

Jul 17, 2010 11:44 PM
Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

Brings back memories of the domino effect. Might work in some cases but my hair is turning gray thinking of it.

Jul 17, 2010 11:45 PM
F. Hill Slowinski, JD
Long & Foster | Christie's International Real Estate - Bethesda, MD
#9 Agent in Long & Foster | Christie's

The second paragraph is cuationary and emphasizes some of the critical requirements that must be paid attention to in order for this strategy to be successful. 

Jul 17, 2010 11:47 PM
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Morning and thanks for the post. Have a great day.

Jul 17, 2010 11:59 PM
Don Spera
CR Property Group, LLC - East York, PA
Serving York and Adams County, PA

The only way I could advise my Seller to take a contingency upon the sale of another home is that the other agent and buyer have to understand that the property will still be continued to be marketed to the fullest, with no changes in the mls status.  This way it does not deter other agents from showing the property or you receiving calls on it.  It would also be with an immediate knock out clause.  At such time the potential buyer receives a non-contingency contract on their home, would the status be changed.

Jul 18, 2010 02:28 AM