Receiving an offer for your house can be a very exciting day if you are trying to sell it, but you may have some concerns with the offer if it contains a contingency that the buyer must first sell his or her home. This type of contingency is relatively common in real estate, but it can be risky too. Before you agree to accept the offer made on your home, you should evaluate whether or not this would be a good idea, and here are several things to keep in mind as you do this.
How desperate you are to sell
One of the first things you should realize is that an offer that contains a contingency to sell can result in waiting for your own house to sell. It can take time for a person to find a buyer, and then it can take more time for the loan to close. All of this will have to take place before this person can purchase your home. If you just listed your house and feel that you can find a buyer that will not have a contingency to sell, you may want to pass up this offer. On the other hand, you may want to accept it if your house has been listed for months and has had very little activity.
The buyer's house and likelihood of selling it quickly
A second thing to factor in is the likelihood that the buyer of your house will be able to sell his or her home quickly. To find this out, you may want to go and see the person's house before you agree to accept the offer. As you do this, take note of the condition of the house, the neighborhood, and the location. You should also review the asking price for the house to see if it seems right. You should also make sure that the house is already listed for sale. If you believe that this person is really motivated to sell and that the house will sell relatively quickly, then you might want to accept the contingency offer.
The amount of time you will be willing to give
Finally, you will need to decide how much time you are willing to give this buyer to sell his or her home. You could choose a short amount of time, such as 30 days, or you could choose a longer amount. If the buyer does not sell during this stated time, the deal will be off, and you will be able to look for a different buyer.
Accepting an offer that has a contingency to sell is not always a bad idea, and it can actually work out well in many cases. If you would like to learn more about contingencies and buying or selling single family homes, contact a local real estate agency today.Share