A contingency to purchase replacement property by the seller? I have viewed several new listings in the last few weeks with the words "contingency for sellers to purchase replacement property" in the agents remarks. This is owner occupied property, not rental property whose owner is doing a 1031 tax exchange. 1. Are the sellers just 'testing' the market? 2. Do the sellers really expect a buyer to wait on any inspections or disclosures while the sellers go looking for another home? 3. Or do the sellers want all the contingencies removed by the buyer before the seller starts shopping for a home? 4. Are the sellers really in touch with the current market conditions in this area? 5. Would the listing agent bring in a buyer under those conditions? In my opinion, if the seller wants or needs to sell they should be prepared to move into a rental unit and store their furniture if necessary. Then they can go looking for a home that appeals to them and they can afford. And the sellers need to be 'pre-approved' for the loan on their replacement property before they list!
Real Property Management of Sarasota & Manatee - Sarasota, FL
Real Property Management of Sarasota & M
That is a new one on me Dan! That said, "Why not?" A contract can be anything the parties agree to . . .
Jun 27, 2011 12:18 PM
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner
Thanks for stopping by. The why not would be with so mant homes on the market in this area, a buyer will not want to be in 'limbo' while the seller decides if they really do want to sell. Thanks for stopping by and your great comment!
Jun 27, 2011 12:40 PM
THE ORIGINAL HOUSTON HOME STAGING - Katy, TX
Houston Home Staging Presents Alicia Barrington
Hi Dan,
I've never heard of this one. We learn something new everyday! Certainly doesn't sound like: " Welcome to your new home, please place your full-price offer on the kitchen table..." I'd be interested to hear how this turns out!
Jun 27, 2011 12:44 PM
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner
Good afternoon HHS! You have hit it 'right on the money'! Thank you for stopping by and adding your excellent input, it is appericated!
Jun 27, 2011 12:53 PM
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert
Dan,
I have never heard of such language or contingency. My opinion is this situation is a can of worms and I personally will tell my clients to beware of such nonsense. I have a hard time believing a listing agent would do something like this!! Why?? Just unbelievable..
Jun 30, 2011 03:56 AM
Living Albuquerque - Albuquerque, NM
Living Albuquerque
Good Evening Dan:
This is a first for me also. I am more failiar with the Buyers contingencies. This one actually seems to defy logic...Let me get this straight, the seller wants to live in the buyer's newly purchased home? OK how about charging the seller double what it would cost him to rent. Are they saying that the transaction will be based on whether or not they find another home under the 1031 Exchange? If they cannot find one then they have the right to terminate the transaction.
Jun 30, 2011 04:37 PM
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner
Hi Bob, I also have a hard time understanding the intent of the listing agent. Thanks for your great comment.
Jun 30, 2011 10:44 PM
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner
Hi C Lloyd, in this case the seller wants to be able to 'find' a new home before the offer on their home is 'binding'. Only in California.
Jun 30, 2011 10:46 PM
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA
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Dan Edward Phillips
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