Tuesday, January 29, 2013

3 Tips To Getting a Contingent Sale Offer Accepted

A contingent sale offer is an offer that is accepted under the pretense that the buyers still have a home to sell.  It is a stressful situation for both the buyers and the sellers.  Sellers fear that the buyer's old home won't sell, is over-priced, or will take too long to sell.  On top of that, the sellers may have a new home or life situation lined up that relies on their home being sold in a specific time frame as well.  Buyers making offers contingent on the sale of their home are hesitant simply because it is an uphill battle to get their offer accepted to begin with, not to mention the logistical difficulties of overlapping the move schedule for two different homes. 

Honestly, contingent sale offers are very difficult to get accepted.  If one piece of the the puzzle drops out, it could affect several other purchases or sales that are based off a single contingency.  Although difficult, here's how to present a contingent sale offer for best results:

1)  Show Them The Money
In real estate, money can make anything better, right?  Fears and apprehensions fall by the wayside if you're able to show them the money.  Contingent sale offers have an increased risk of never closing, and you need to be able to come up with a strong case to get your offer accepted.  This isn't a situation where you can low-ball and get your offer accepted.  Have your Realtor pull comparable properties and pay the fair value of the home, no more/no less.  If possible increase your down payment to show the sellers that you're financially stable, and always include a lender's prequalification letter.  

2)  List Your Home Prior to Going Under Contract on a New Home
It may seem like a no brainer, but how serious would a seller think you are if you haven't listed your home yet?  Not having your home on the market shows that you don't have your act together, and will only be wasting more time - de-cluttering, finishing projects, painting, etc...If absolutely need to sell your home in order to purchase a new home, get it listed as soon as possible, before you even think about putting in an offer.

3)  Prove How Quickly Your Home Will Sell
Along with the offer, include a listing description of your home, along with several other comparable properties for the seller's agent to review.  This will do several things: 
  • Shows the sellers that you are serious about selling your home and buying theirs
  • Shows that you are fairly pricing your home for a quick sale
  • Verifies the condition of your old home
  • Indicates how quickly everyone can assume a sale of the old home
In this market, a reasonably priced home will sell within 20-35 days.  There is no point to over pricing your old home while putting in a contingent sale offer on a new home. 

With property preparation and cooperation, contingent offers can be a win/win for all parties involved.  Sellers need to carefully weigh the risks and rewards of accepting such an offer, and buyers need to make it worth the risk for the sellers.  Cooperation is certainly key to making a contingent sale deal go through.

Jared Reimer is a real estate expert at Prudential Rocky Mountain Realtors in Northern Colorado.  Real estate is his passion and he always wants to connect with like-minded and savvy real estate fans.  For more information or to get in touch with Jared, please visit his website at www.ReimerRE.com or email him at JaredReimer@ReimerRE.com

1 comment:

  1. Hi, that article is really a great one and there's a lot of interesting topics. It is also can be helpful, thanks.

    Kirstz | land for sale Philippines