We received this excellent question recently:
Our house has been on the market for awhile and now we have an offer.
But, it’s contingent upon the sale of the buyer’s home. What does this mean? Should we accept it? It’s the first offer we’ve had in a few months, so I’m thinking yes. Help!
Our advice would certainly depend on a lot of factors, but it’s a maybe!
If your home has been on the market for awhile and it’s not a seller’s market in your home’s price bracket, you don’t want to unilaterally just pass on this – it could be a great opportunity.
We’d want to ask some more questions… Can we work with that buyereir offer to a place that works for both parties? Also, is their home on the market? Is their home under contract? If so, we’d want to look at that contract. We would need to understand how strong their offer is.
There are times that we’ve represented buyers that came forth with an offer like this. It wasn’t our listing, and guess what? We got to the closing table – because we know how to get our buyers to the closing table. In this case, the agent on the other side needs to be helpful, too. So, we also look at who that agent is… because that does make a difference, and we are often familiar with that agent.
There’s a particular clause in the contracts here in Florida called a “kick-out clause.” If it’s a buyer’s market, you as a seller may or may not want to consider that. Basically this clause says,
“I’ll take your offer and it’s contingent upon the sale of the home, but I’m leaving it active. I’m taking backup offers, and when I get an offer you’re going to get first right of refusal. If you still want this house, then okay, the contingency’s gone, this house is yours.”
This can be helpful, as it gives the buyer some protection. If she or he is not in a position to own both homes, this offer can be accepted, subject to the above – a win-win for a buyer and a seller.
The most important thing to know is that every scenario is different, so you want to be sure you are working with the right Realtor… a team that can give you guidance and help you make the right decision for your specific situation. There are a lot of factors to come together to create the right deal! (That’s the part that we love! It’s the the fun part!)
We’d love the opportunity to help you through scenarios such as this, and to get you to the closing table. Contact us at (561) 571-2289 for a no-obligation consultation!