A Word on Contingent Offers
Not all contingent offers are bad. Sometimes, they can work to your advantage as a seller.
Contingent offers have been popping up a lot in our market, so I want to clear up a few myths and misconceptions you shouldn’t believe about this type of offer if you’re a seller and you receive one.
First of all, they’re not always bad. Sometimes, they can even work to your advantage, although each situation is different.
Obviously, a contingent offer that’s dependent on the sale of another home can be a disadvantage because it involves something that’s out of your control. That offer, for example, could depend on a home that’s not even on the market yet, or one that’s located in a neighborhood that doesn’t support its price point.
So if you’re considering a contingent offer, you need to inquire whether the home is on the market and what price point it’s at. You also need to know what type of property it is—is it the type of property that sells routinely or is it a 32-acre horse ranch?
Next, take the time to understand the buyer and where they’re coming from, meaning what their local market looks like. We’re seeing a lot of contingent buyers selling out of San Jose and looking to move here, and in San Jose, homes are flying off the shelves.
Another advantage when selling to a contingent buyer is that once they sell their home, they have to follow through on purchasing yours. Otherwise, they’re homeless. Also, the buyer can’t bully you on inspection or repair items.
The bottom line is, don’t prejudge a deal until you’ve heard all the details, and make sure your agent knows which details to consider. If your contingent buyer has a home that’s in the process of closing, you may have a better deal on your hands than you would if you accepted a non-contingent offer because contingent buyers will oftentimes pay more.
As always, if you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.