any thoughts on a contingency offer....there are certainly many homes to choose from... the market is not being touted as a HOT market... there are some areas that are doing better than other... but I wonder...if I bring an offer and its contingent on the proceeds of the seller selling their home...don't just disregard the offer and roll your eyes .... a contingency may just be a win/win situation for all. No offense to my fellow Realtors...but have you read the form...understand what it means... HEY I used to think that if a contingency offer came across that the seller could be losing out... NOT SO... and in this market BRING IT ON!!! Make sure that both parties understand what contingency means...the pluses & minuses - OVERALL the seller continues to have their home shown...look at another offer...Buyers will be a little more motivated to get their house sold... What do you think?
I can't speak for others, but I "ALWAYS" check out more listings than just the "ACTIVE" ones, so that I can show everything available. I spoke to an agent last week that NEVER searches the pendings, or contingency listings. He was a "NEW"by. A contingency on a listing can be a deterrent for agents looking to show a lot of properties since there are truly so many ACTIVES on the market. Good luck.
MJ, Depends on the market … in the market you describe … I say bring it! Any offer is better than no offer. It’s our duty to work with what we have and do what we can to get our clients what they want.
We have a status 'Pending Continue To Show' in our local MLS, specifically for contracts with contingencies.
Another route to take, would be to write up an Offer based on Option Money. Buyer pays Seller an 'Option Fee' to take their property off the market for 'said' amount of time. Option Fee paid directly to Seller (non-refundable)....Buyer can terminate contract for any reason at any time.
Here in NC, this is called Alternative 2, which is about to become the 'only' alternative as of 1/1/11.
You make some valid points MJ on under utilized contingency offer. I think there are a lot of considerations to think about and ask the questions regarding the buyers current situation.
- What price range is their current home?
- Where is it located?
- What condition is it in?
- How much do they owe on it?
- Can they sell at an aggressive price point?
These are just a few questions to ask... not everyone is in a favorable position to sell their home within a reasonable time frame.
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