Just too many variables. The potential buyer goes through the same process you went through to secure the bid. You wait for the buyer's home to be sold and assuming no delays in the timeline for your home's purchase, you proceed to the closing table. Reason being is that you have the option to "bump" if you find something better (At least with our contract here). Dora Hererra accepted the first offer she received on her house in Los Angeles two days after listing because the buyers had a complete package together when they made the offer. Honestly, I would rather take my chances on the market - if they love the house they may come back when their home sells. They have to negotiate bids, work out the details, and sign the contract. Once the seller accepts the back-up offer and the Trust your agent. What should I do? Pending - Short Sale. They make an offer contingent on the sale of their current home, which means they can’t really buy yours until their house has closed. A cash offer could have contingences related to inspections and appraisals if the buyer demands it. Now, the seller is taking backup offers in case their deal falls through. The other option is to have your own "opt out". In the state of Colorado, when you accept a contingency offer, your listing on the MLS has to be changed to reflect that there is an offer on your house. Should you cooperate with a prospective purchaser who must sell a home before buying yours? Contingent Scenarios. A kick-out clause allows you to make an offer on a home already under contract. 21 September 2007 at 5:57PM edited 30 November -1 at 12:00AM in House Buying, Renting & Selling. Why this isn’t a good idea for a Seller. Should I Accept a Contingent Offer on My House? Your agent will help you understand the context here. Should I accept an offer with a home sale contingency? 2. Once you’ve moved past the price portion of the offer, consider if other needs and conditions will be included. Should I accept an offer on my house? As hard as it may seem to contemplate an offer much lower than your asking price, serious sellers should look at all the signs leading up to it and consider if this is the offer to accept. Ordinarily I would say take the higher price offer but I’m concerned about accepting a contingent offer on top on my contingent purchase. 21 September 2007 at 5:57PM edited 30 November -1 at 12:00AM in House Buying, Renting & Selling. Maybe. Home inspection. A back-up offer, as the name suggests, is a second offer on the home. There are many pros and cons to accepting such a bid. Acceptance of a bank check or a check from the closing attorney’s trust account is a better alternative. In many cases, they also have to put earnest money down to show the seriousness of their offer. Often, a buyer will make an offer to purchase a house contingent upon the sale of his property. Accepting an offer on your house is an exciting moment. But it is only the beginning of a long and confusing journey to close. And it’s also rare that other buyers will make offers on your home if you first accept a contingent offer, McGrath added. Making the Offer . Contingent Offer Overview . At least they have theirs on the market. Why this isn't a good idea for a Seller In the state of Colorado, when you accept a contingency offer, your listing on the MLS has to be changed to reflect that there is an offer on your house. Consider this. Do not forget to ask for proof of funds and never accept a personal check at the closing from a buyer. 20 replies 26.6K views Jack0212_2 Forumite. "As a seller, I would be wary of accepting a contingent offer as it introduces so much uncertainty and has a clear cost to the seller," McGrath said. The $64,000 dollar question is, "should you?" While offer acceptance might seem like the end of your house hunting journey, it’s also the start of another – the journey to closing. But when you accept a contract offer contingent on the sale of the buyer's house… If you accept an offer on your home, you should know how long you have to buy another, and vice-versa. Such bids help buyers who want to sell and buy at the same time. Motivated couple who want their “dream house.” Home isn’t bad, but could possibly sit on market for a couple weeks. must meet certain conditions before the sale can close — don’t celebrate too soon. A home can still be shown, even if you have a contract signed by the seller. This is known as a contingent offer, and you should understand what it entails before making or accepting one. Even if a seller accepts an offer from another buyer but the contract is contingent on the buyer selling his current home, the seller has the right to continue to market the home, RealEstate.com points out. What is a contingent offer? 17 posts. Motley Fool from "property investment" - Google News https://ift.tt/32zXPcO I personally would not take an offer that is contingent on a home sale unless we got desperate. Should I accept a contingent offer on my house? Please be aware that if you do accept a cash offer, it is not necessarily a slam dunk. A contingent offer to purchase a home states that you are able to make the purchase only upon successful sale of your current home. Here’s what to expect and what can still go wrong. Most real estate contracts will specify time limits on how long you have to sell your home before your purchase contract terminates. Making an offer on a house can be scary, especially if you want it very badly. Buyers who can buy another home only if their current home is sold need to convince sellers that it’s worth the risk to accept their contingent sale offer. Of course it depends on local trends and the market in your area. Once you’ve accepted a contingent offer most multiple listing service (MLS) require a change in the status of your listing from active to pending or contingent. Due to their risky nature, Donnelley recommends approaching a contingent offer with caution: “If the buyer hasn’t accepted an offer on their house, it’s in our best interest as the sellers to keep that interested party engaged, but tell them that we’d love to see their offer once they accept an offer on their house. And even better, trust the phrase, “The first offer is always your best offer.” Related: Advice for Buyers Bidding on Home … Most often this means you don’t have to sell your current home in order to qualify for the next home. Even get your offer accepted even though your offer is lower than other potential buyers. They make an offer contingent on the sale of their current home, which means they can't really buy yours until their house has closed. 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