|
 |
|
|
Contingency Contract....Ouch!
So you have your house on the market? Time to look for a new home? Many people pick out their new home when the house that they currently live in goes on the market. It can be frustrating and tiresome to have your house on the market and not know where you are going to move to. Many people want to get out there and look. Looking a bit is alright. You want to be fairly aware of what's on the market in your price range. Writing a contingency contract, on the hopes that your home will sell soon is a huge mistake, however. Think in terms of the seller of the home that you pick out. If they accept your contingency offer, can they go put a contingency offer on another home in the hopes that your home will sell? No seller in their right mind would want to be a couple of layers deep in this contingency mess. If the seller is motivated enough to accept your offer you will have very little, if any, negotiating room. Why would the seller take their home off the market and come off the price when it isn't a sure bet that your home will sell? Prepare for heavy scrutiny if you offer up a contingency offer and a likelyhood of a hearty "no way". The seller will want to know how long your home has been on the market, what it is priced at, whether their agent can look at your home and pull comparables on it, what your plans are if it doesn't sell in 30 days, 60 days, 90 days. Even then they are very likely to get the information and still say no. Assume that you do successfully get a contingency accepted. There is a clause in the addendum that allows the seller to force the contingency if another offer comes in. The MLS still reads that it is contingency contract. Some people will still be showing the home (though it will reduce traffic significantly). Say someone looks at the property and decides to offer on it. They have financing in place and no contingency. Typically you are in the position of either waiving the contingency and saying that, regardless of if your house sells or not, you will be taking the property or backing out. By this time you've done inspections and spent at least $500. How devastating would this be to you? Again, if you advance a contingency offer remember that it reduces your negotiating ability, and it potentially could be a waste of your time and money. Better to wait until your house is under contract. Then it is still (if you have a good agent in your court) going to be a contingency, but it's contingent on a deal that is already in place. This type of contingency is understood and accepted with no problem. Once a house goes under contract the chances of something happening and it not selling are less than 10%. Once you are to this stage anticipate an offer that will be entertained.
|
Contributor's Note
contingency contracts can cost you money
|
|
|
 |
|
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "Contingency Contract....Ouch!" has been specified by the contributor as:
All Rights Reserved
This content may not be copied, distributed or adapted by anyone under any circumstances.
|
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
