sbgrace Posted September 6, 2012 Share Posted September 6, 2012 (edited) Would you enter into a real estate contract contingent upon the buyer's home sale (under contract right now) closing? The realtor suggested we write up our own contingency that they must provide written proof their buyer has been approved for a loan and that their buyer's approval for the loan isn't also contingent on selling a home. I don't know how she would word it. My understanding is they sold their home to someone they know without an agent so I'm not sure what's the status. Our agent says it's been three weeks since they entered contract. Does this seem terribly risky? Our home has been on the market a bit over two weeks. We haven't yet made a counter to a low offer so it may be a moot point anyway. I'm just worried about the contingency given our home hasn't been on the market long and we'd be out of time to sell a house (closing is Oct 31) if this fell through. Edited September 6, 2012 by sbgrace Quote Link to comment Share on other sites More sharing options...
jamajo Posted September 7, 2012 Share Posted September 7, 2012 I would wait to see if you get any non contingent offers. I don't know your market but how long comp homes stay on the market in your area is key to knowing how you should respond. But in any market 2-3 weeks is nothing for a home to be on market. I would wait. You could always go back to them later if they are still interested or make them a back up to a first contract you enter into with someone else. I was a realtor in my former life (you know the life you had before you homeschooled.:D Quote Link to comment Share on other sites More sharing options...
ChristyB in TN Posted September 7, 2012 Share Posted September 7, 2012 Would you enter into a real estate contract contingent upon the buyer's home sale (under contract right now) closing? The realtor suggested we write up our own contingency that they must provide written proof their buyer has been approved for a loan and that their buyer's approval for the loan isn't also contingent on selling a home. I don't know how she would word it. My understanding is they sold their home to someone they know without an agent so I'm not sure what's the status. Our agent says it's been three weeks since they entered contract. Does this seem terribly risky? Our home has been on the market a bit over two weeks. We haven't yet made a counter to a low offer so it may be a moot point anyway. I'm just worried about the contingency given our home hasn't been on the market long and we'd be out of time to sell a house (closing is Oct 31) if this fell through. You need a 72 hour clause in the contract. Your house doesn't pend, you keep showing it and if you get another offer the first buyers have 72 hours to set a closing date and the earnest money goes hard. I also like the pp's advice. You haven't been on the market that long. Quote Link to comment Share on other sites More sharing options...
Plateau Mama Posted September 7, 2012 Share Posted September 7, 2012 Around here they list the house as "pending, backup offers wanted" or something like that. They keep showing the house as though it's not sold. You cannot bump the current offer for another contigent offer, but you can for a noncontingent. Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted September 7, 2012 Share Posted September 7, 2012 Around here they list the house as "pending, backup offers wanted" or something like that. They keep showing the house as though it's not sold. You cannot bump the current offer for another contigent offer, but you can for a noncontingent. Except even that status is... off-putting. We just bought a house. I did NOT have a house to sell or anything, and I avoided all Pending houses. IF we had been unable to find something in the Open houses, I would have looked at Pending, Backups accpeted. But I was not at all eager to bump/compete with another buyer. Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted September 7, 2012 Share Posted September 7, 2012 Would you enter into a real estate contract contingent upon the buyer's home sale (under contract right now) closing? The realtor suggested we write up our own contingency that they must provide written proof their buyer has been approved for a loan and that their buyer's approval for the loan isn't also contingent on selling a home. I don't know how she would word it. My understanding is they sold their home to someone they know without an agent so I'm not sure what's the status. Our agent says it's been three weeks since they entered contract. Does this seem terribly risky? Our home has been on the market a bit over two weeks. We haven't yet made a counter to a low offer so it may be a moot point anyway. I'm just worried about the contingency given our home hasn't been on the market long and we'd be out of time to sell a house (closing is Oct 31) if this fell through. No, I would not enter a sales agreement with a contingency for the buyer after just two weeks on the market, unless said contingency requires the buyer to act immediately (within 24 hours) to remove the contingency and proceed with the sale in the event that you receive an actual offer. Even then, it isn't a good idea, because no actual buyers who can perform are interested in a house that is already encumbered with an accepted offer with a contingency. I'd tell the Buyer to come back when his home is sold. Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted September 7, 2012 Share Posted September 7, 2012 Except even that status is... off-putting. We just bought a house. I did NOT have a house to sell or anything, and I avoided all Pending houses. IF we had been unable to find something in the Open houses, I would have looked at Pending, Backups accpeted. But I was not at all eager to bump/compete with another buyer. Right. Pending houses will not be as desirable. Quote Link to comment Share on other sites More sharing options...
Jeannie in NJ Posted September 7, 2012 Share Posted September 7, 2012 there are so many houses for sale in our area that even if your listing says "under contract, CONTINUE TO SHOW" that no realtors will continue to show your house. There are too many other houses that are not under contract for a realtor to spend his/her time showing houses that are already under contract. Quote Link to comment Share on other sites More sharing options...
Alyeska Posted September 8, 2012 Share Posted September 8, 2012 (edited) Yes I would accept the contingent offer since they are in the closing process now. However, I would make sure that there was a contingency that you could continue to show the house and accept back up offers in case their closing fell through, which would make their contract with you null and void. ETA: I just went back and read some other answers. : ) We must be rare ones...a seller accepting back up offers was not off-putting for us at all when we were looking to buy. Real estate contracts fall through all.the.time. You just never know. Edited September 8, 2012 by Alyeska Quote Link to comment Share on other sites More sharing options...
Happy Posted September 8, 2012 Share Posted September 8, 2012 Would you enter into a real estate contract contingent upon the buyer's home sale (under contract right now) closing? The realtor suggested we write up our own contingency that they must provide written proof their buyer has been approved for a loan and that their buyer's approval for the loan isn't also contingent on selling a home. I don't know how she would word it. My understanding is they sold their home to someone they know without an agent so I'm not sure what's the status. Our agent says it's been three weeks since they entered contract. Does this seem terribly risky? Our home has been on the market a bit over two weeks. We haven't yet made a counter to a low offer so it may be a moot point anyway. I'm just worried about the contingency given our home hasn't been on the market long and we'd be out of time to sell a house (closing is Oct 31) if this fell through. I was overly worried until I got to the part where the other party's home is being sold without an agent. That just waves red flags to me....I guess because I don't really know what the status is. When one of my seller's accepts an offer where the buyer is selling their home, I require a copy of the first page of the contract or a copy of the MLS page showing contract status. I also want to know the other agent is watching and shepherding that process a bit. I want updates often on the status of that contract. A seller/buyer of mine this summer did this. His home had been on the market 40 days or so, he accepted an offer contingent on the sale of the buyer's home which was under contract. My seller then became a buyer when he put a contract on his new place contingent on the close of his home. There were three closings only hours and days apart. If one domino had fallen wrong....but they didn't. It all went off without a hitch. The first offer can be the best offer...I dunno. I'd sure have to look at comparables in the neighborhood and how **strong** their offer is. Best of luck in making that decision! Quote Link to comment Share on other sites More sharing options...
Mrs Twain Posted September 8, 2012 Share Posted September 8, 2012 It sounds like these buyers made a very low offer in addition to having a contingency on selling their own home, with which they are not even using a realtor. That sounds awfully sketchy to me. I think that is a pretty risky contract. If the contract were for the full asking amount or higher, I might think about it. But if they are making a lowball offer, I would be pretty put off. However, if this is the only contract you think you may get and you are desperate to sell the house, then you might think about countering and/or taking their offer, risks and all. It is September which isn't the ideal time to sell a house. If the housing market in your area is slowing down for the fall, you may have to take a non-ideal contract. I do like your realtor's idea about the buyer being approved for their loan and that their contract isn't also contingent. Quote Link to comment Share on other sites More sharing options...
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