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Info needed on offer contingent upon the sale of a house?
How does it work when someone makes an offer on your home but has to sell another house? Can they really expect you to wait months and months until their house is sold?
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Posted 9/15/10 11:59 AM  |
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Prudential Douglas Elliman Real Estate
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
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Re: Info needed on offer contingent upon the sale of a house?
happens all the time. It means all of their cash flow is in their house and until they sell theirs, they can't buy yours.
Alot of buyers reject offers with this kind of stipulation.
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| Posted 9/15/10 12:11 PM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: Info needed on offer contingent upon the sale of a house?
It's one of the things you are warned never to do. When we bought our home (we were first time buyers) the seller bought another home. Things were held up in contract because of permits and she almost lost the house - she didn't have that contingent in her other contract. Didn't matter to us because she had to be out of the house we were buying.
From what I remember being told (and I'm sure Beth and others can confirm) you can put a specific amount of time in the contract stating they have up to 6 months or something like that.
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| Posted 9/15/10 12:24 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Info needed on offer contingent upon the sale of a house?
personally I would never accpet an offer with that contingency...especially in this market when houses sit for a while...
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| Posted 9/15/10 12:37 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Info needed on offer contingent upon the sale of a house?
Posted by pickles16
personally I would never accpet an offer with that contingency...especially in this market when houses sit for a while...
not many people are accepting this type of offer now
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| Posted 9/15/10 1:38 PM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
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Re: Info needed on offer contingent upon the sale of a house?
this doesn't happen anymore, every house we looked at before we even set FOOT we were asked if we needed to sell something.
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| Posted 9/15/10 2:31 PM |
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Re: Info needed on offer contingent upon the sale of a house?
Posted by maybesoon
this doesn't happen anymore, every house we looked at before we even set FOOT we were asked if we needed to sell something.
But what if you did need to sell something? Would they have shown you the house?
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| Posted 9/15/10 2:35 PM |
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KittyGags
LIF Adult
Member since 7/09 5614 total posts
Name:
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Re: Info needed on offer contingent upon the sale of a house?
the buyers we bought from wouldn't accept an offer like this--we ended up borrowing our down payment from my mom and when we sold our co-op we turned the check over to her.
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| Posted 9/15/10 3:17 PM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
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Re: Info needed on offer contingent upon the sale of a house?
Posted by Househunter2010
Posted by maybesoon
this doesn't happen anymore, every house we looked at before we even set FOOT we were asked if we needed to sell something.
But what if you did need to sell something? Would they have shown you the house?
we have a one bed apt that we own, but we are renting it out ( it's not selling). owners and REA really were not happy when we told them we own an apt. but we brought our prequal with us bc it was just easier then dealing with huffs and puffs. I think you should sell what you own first, maybe once under contract you can bid on homes. good luck to you!
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| Posted 9/15/10 9:21 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Info needed on offer contingent upon the sale of a house?
Posted by Househunter2010
Posted by maybesoon
this doesn't happen anymore, every house we looked at before we even set FOOT we were asked if we needed to sell something.
But what if you did need to sell something? Would they have shown you the house?
Would they physically show you the house? I'm not sure - I would imagine it's up to the agent and/or the sellers. When we sold our condo in 2008 we told our agent upfront that we would not look at offers from people who had to sell something first in order to close on our place.
Honestly, unless you can prove that you can handle both mortgages, I do not think that most sellers would even entertain an offer - it's just too risky in this market.
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| Posted 9/15/10 9:35 PM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
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Re: Info needed on offer contingent upon the sale of a house?
Posted by Karen
Honestly, unless you can prove that you can handle both mortgages, I do not think that most sellers would even entertain an offer - it's just too risky in this market.
exactly, this is why we walked around w/ our prequal, so annoying but they never believe we could handle the 2 mortgages
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| Posted 9/15/10 9:41 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Info needed on offer contingent upon the sale of a house?
We did something like this in 2007 BUT that was a different market then!
We made an offer on our CURRRENT house but our offer wa based upon us selling our previous house. The sellers of the house we made the offer on gave us an contigency for 30 days to sell our house.
We sold in 1 in contract in 5 so it was a none issue.
In todays market we would never be that lucky again!
Message edited 9/16/2010 8:47:26 AM.
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| Posted 9/16/10 8:46 AM |
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Re: Info needed on offer contingent upon the sale of a house?
I think if there is a current contract on the selling house and the inspections have been done and it is moving along, then I think it can still be done.
When we bought our current home we had in the contract it was contingent on the sale of our home. Our offer was one of 4 and was the second best. The first offer was offering more money and had nothing to sell and we got the house. So it doesn't always go to the best offer that is on paper.
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| Posted 9/16/10 8:55 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Info needed on offer contingent upon the sale of a house?
Posted by Beth
Posted by pickles16
personally I would never accpet an offer with that contingency...especially in this market when houses sit for a while...
not many people are accepting this type of offer now
I wouldn't accept this offer with the market the way it is now. I would tell the buyers to sell their house first and then re-submit their offer once they are in contract. Then I would want to have my lawyer review their contract and I would have a clause in my sales contract stating the MAX days they have to close on my house.
Once you're in contract, you cannot show / market the house anymore unless the contract ends... I wouldn't take that chance in this market and in even the best market, I'd have a maximum amount of time to wait until closing. In this market, I'm not willing to sacrifice any amount of time marketing and showing my home. I don't think too many other sellers are either. If someone were in contract on the home they were selling, however, I would consider their offer.
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| Posted 9/16/10 9:52 AM |
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leighdvm
My golden boys!
Member since 3/06 4419 total posts
Name:
Michele
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Re: Info needed on offer contingent upon the sale of a house?
So what do people do who want to sell their house and buy another? Do they sell, and pray they find something before the closing date? Put their stuff in storage and rent an apt until they find something?
I'm actually entertaining the idea of buying a bigger home, but not sure how to go about it. We definitely can't do both mortgages......
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| Posted 9/16/10 1:21 PM |
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pickles16
Real Estate Professional
Member since 11/07 17227 total posts
Name:
Jen
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Re: Info needed on offer contingent upon the sale of a house?
Posted by Kara
Posted by Beth
Posted by pickles16
personally I would never accpet an offer with that contingency...especially in this market when houses sit for a while...
not many people are accepting this type of offer now
I wouldn't accept this offer with the market the way it is now. I would tell the buyers to sell their house first and then re-submit their offer once they are in contract. Then I would want to have my lawyer review their contract and I would have a clause in my sales contract stating the MAX days they have to close on my house.
Once you're in contract, you cannot show / market the house anymore unless the contract ends... I wouldn't take that chance in this market and in even the best market, I'd have a maximum amount of time to wait until closing. In this market, I'm not willing to sacrifice any amount of time marketing and showing my home. I don't think too many other sellers are either. If someone were in contract on the home they were selling, however, I would consider their offer.
ITA
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| Posted 9/16/10 7:08 PM |
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Mrs213
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Member since 2/09 18986 total posts
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Re: Info needed on offer contingent upon the sale of a house?
Unfortunately in this market I think you need to sell your place first and then hope you find something reasonably fast
I don't think I'd accept that offer in a market where houses can be for sale as long as a YEAR
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| Posted 9/16/10 7:41 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Info needed on offer contingent upon the sale of a house?
We tried to put a bid that was contingent on our sale, but their agent said they wouldn't even consider it.
I understand not accepting it, but I thought they should still consider it (see the bid), since they did sell the house (to someone else) for $40K less than we were willing to pay. If they had looked at our offer, they might have some more negotiating power with the other buyers.
We thought that if we made this offer than we could know what we needed to sell our house for.
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| Posted 9/16/10 7:54 PM |
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LDrinkh20
LIF Adult
Member since 9/09 1820 total posts
Name:
Lauren
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Re: Info needed on offer contingent upon the sale of a house?
You can also put in an offer that is contingent upon the sale with a time limit and a kick out clause. The kick out clause let's the sellers give the buyers 3 days (i think.) to decide if they want the house if they recieve a better offer.
We are currently selling our home and house hunting and are planning making that type of offer if we find a house we love. Hopefully we sell first!
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| Posted 9/16/10 8:23 PM |
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