Contingent Sales Offer

While you may be focused on the important first steps for getting your home ready for sale, it's a good idea to look ahead to other decisions in the transaction once purchase and sale agreements have been signed. For example, whether or not to accept a contingent sale offer can depend on activity in the local market and your own particular situation, among other factors.

What is a contingent sale offer? It's an offer made subject to the sale for the buyer's property. If the buyer's property doesn't sell, the buyer isn't obligated to complete the purchase. Repeat buyers, unlike first-time buyers, often have to sell their existing home so they can afford to buy another home. Some repeat buyers sell their home first and then buy. But others find it difficult to let go of their current home until they know for sure where they'll live next. An experienced agent will help you navigate the contingent sale offer.

When you're ready to sell your home, we can talk through all the steps in the home selling process and do some planning to ensure that your home sale is as hassle-free as possible.

Handling A Contingent Sales Offer

Find out as much as you can about the buyer' property before deciding whether or not to accept the offer. If it's already on the market, have your agent ask the buyer's listing agent how much activity they're getting from interested buyers.

The buyer's home may not yet be on the market when they make their offer. If so, and you want to work with the offer, make sure your purchase contract includes a provision for the buyer to multiple-list their home within several days of contact acceptance. You may also want your agent to have the right to approve of the list price of the buyer's home.

Make sure that your contract with a contingent sale buyer specifies two time frames: one for the buyer's property to sell (say 30 to 60 days) and another for closing the sale. Often contingent sales offers don't specify a time period for the buyers to find a buyer for their home. Without this provision, you could find out the day before closing is supposed to occur that the buyers still haven't sold their home.

Don't hesitate to call or email The Davison Team with any questions!