A Contingent Offer is Only as Good as the Home Listed

By
Real Estate Agent with RE/MAX Gold DRE #00697006

A potential home buyer is working with one of my team members to buy a home in Elk Grove, but she keeps coming back to a listing we have and asking about buying it with a contingent offer. Her close relative has her home listed, and this buyer continually expresses displeasure with the way things are going. The problem is we cannot interfere in the sale of her home, and we certainly would not ask her to list with us. It has to happen the other way around, and she has got to ask us to list her home.

It's sorta like being between a rock and a hard place. Because when I look at her listing, it is apparent to me that she is about $50,000 over market value. That's significant. She will not get her price in this market at this time. So, do I tell her that? Do I take the risk that I could be interferring in her transaction even if she asks me? Do I take the risk that her relative will chase me down in the parking lot with an ice pick?

You can read more in my personal blog today about Elk Grove Sellers Who Buy with a Contingent Offer is Becoming the Norm.

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Weintraub and Wallace Realtors

 

 

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Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

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Topic:
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California Sacramento County Elk Grove
Groups:
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Tags:
contingent offers
buying a home in elk grove
elk grove agent
buying a home before selling
buying and selling at same time
selling a home before buying
writing a contingent offer

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Rainmaker
1,317,958
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Elizabeth, I would think that she might want an explanation about why your seller won't accept a contingent offer...kind of a grey area, but if you told her you didn't feel that her home was priced "aggressively" enough for a sale within the time frame of the contingency?  You could probably throw in a few other reasons why it wouldn't be in your clients best interest to accept....you never know! 

I also know that "water" doesn't have a problem being between a rock and a hard place.

Jan 30, 2015 06:27 AM #1
Rainmaker
2,538,792
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Whoa!  That's a tough one!  What you might do, if there is enough equity in the home the buyer wants to sell, is to suggest getting a bridge loan on it.  That can kill two birds with one stone.  Number one would be tht during the bridge loan process, an appraiser may provide a reality check on price.  But, if the numbers pencil right there may be enough equity to close on the sale of your listing.

Jan 30, 2015 10:59 AM #2
Rainmaker
2,916,231
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

That's a tough one Elizabeth.  I hear what Nick and Myrl is saying.  How long as her place been on the market would be my first question.  On those tough ones I usually suggest they get an appraisal but it not being your listing you may be crossing that invisible line.  Again tough call..... Let us know what your decision is 

Jan 30, 2015 07:30 PM #3
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Elizabeth.  I have suggested to sellers like this to hire an appraiser.  Let the appraiser be the neutral party and drop the hammer on value.

Jan 30, 2015 08:18 PM #4
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