Sellers on the fence!!!

By
Real Estate Agent with Century 21 Commonwealth Real Estate

Hey guys I am only a couple minutes away from helping a couple of my clients write an offer.  I do however have a problem.  They are making an offer on bank owned property and want to write in a contingency upon their home selling.  I have talked with the bank and believe it or not they said they would entertain and possibly accept as long as there is a 48 hour kickout clause attached.  Wow I thought that was awesome.

I talked to the buyers earier and I was excited,  only for them to tell me they did not want to give the bank a kickout.  I told them the bank would not accept the offer without this and they said they were looking out for themselves.  What do you think I should do?

I have had several people lately want to make offers and most of them with contingencies.  They don't want to list their home until they have found one to buy, this makes it really hard on us REALTORS®.  It is hard enough to get a home 'sold' right now much less having to sell one in a week or two so another contract will go through.

Well I have to go.  I will let you know how it goes.  

www.stevecampbellproperties.com

 

 

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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Banks in our area don't accept any kind of a home sale contingency!  All you can do is submit without the kickout and see what the bank will do.  I'm sure it will come back with one attached to it.

Oct 09, 2008 12:38 PM #1
Rainmaker
400,528
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

That certainly does not sound ideal.  Good luck!

Oct 09, 2008 12:45 PM #2
Rainer
1,610
Peter Ciurczak
REMAX Diamond Realtors - The Luz Group - Edison, NJ

Hello Steve - that's a difficult situation !!  And I'm very surprised that the bank is even willing to entertain the idea of a kickout clause and/or any contingency.  The banks we have been working with are very strict about "selling the property as is" and absolutely "no contingencies".

When we have been working with our clients we have found success in showing them the "value" that they are netting as a result of taking advantage of the "below market pricing" associated to a bank owned property.

Our experience has been that each bank owned property we have marketed has received multiple offers. And with multiple offers being presented, buyers need to understand that the strongest prospective buyer for the bank is the one that presents a fair price, has no contingencies and is either a cash buyer or has been pre-approved.  So the bottom line is -- if these clients want to take advantage of the value they can get from purchasing a bank owned property - then they need top position themselves to be prepared and ready to go when the opportunity presents itself.  They should get their current residence on the market and put themselves in more of a postion of readiness.

Hope this helps and best of luck.

Pete (908) 391-4528  

Oct 09, 2008 12:48 PM #3
Rainer
71,715
Teresa Cox King
RE/MAX of Orange Beach - Orange Beach, AL
Orange Beach and Gulf Shores, Alabama

Sounds as if you will be wasting everyone's time writing that offer for this buyer.  I've had buyers ask this same thing, and you've been luckier than I have with a bank agreeing to a contingency.

Oct 09, 2008 12:52 PM #4
Rainer
15,169
Steve Campbell
Century 21 Commonwealth Real Estate - Georgetown, KY

I agree, this is the first bank that has entertained a contingency.  However, this is a small town locally owned bank.  The other larger banks I am lucky if I can even get them to call me back.  We did the kickout but the offer was pretty low because of it.  I will send it in tomorrow and see what happens.  We will be praying.  Thank you all for commenting.  SC

Oct 09, 2008 02:23 PM #5
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