Selling a house on contingency?

Question

Can someone explain the process involved if I sell my house on contingency (I know what the term means)? I'm putting my house on the market soon and am curious what is involved before I do so and look for another house.

Answer 1

If you are selling a house on a contingency then you will sell the house under certain conditions. If some one puts an offer on your home with a contingency, then they will buy with certain conditions. Most of the time if someone is making an offer with contingency on your home its because they need to sell there home first! FYI if you decide to accept a contingency offer besure you have a 48 hour first right of refusal. This give you the right to break the contingency contract if a better buyer makes an offer. It will give the contingent buyer 48 hours to meet 2nd buyers offer or follow through with the orginal offer or you can sale it to the 2nd buyer.

Answer 2

There is 2 sides to you question.
1: If you put your house up for sale and go looking for another do you have to sell yours first in order to purchase the new home? If the answer were yes, you would put a contingency in the contract that you have to sell your house in order to buy the new one. If yours does not sell you get your money back. The problem is this is wide open with no date set as to when yours must sell and you do not even have an offer never mind a contract. It is doubtful anyone would take a contract like that. Not impossible just doubtful.
2: If you put your house on the market you get an offer but there is a contingency agreement that your buyer must sell his home first. This happens allot because your buyer has a contract to close on his home and he wants to close on your house the same day. Just make sure the people buying his home are solid buyers with good financing (hopeful with a loan commitment not just a pre approval) I have seen this happen many times successfully, I have also seen it fall through in the middle of the chain and ruin everything.
Good luck selling your home. If you are going it alone I advise the use of a Real Estate Attorney to review your contracts and keep you out of trouble.

Answer 3

What I think you mean is, "what if I sell my house to someone that can't close until they close on their home sale first".

In Texas the normal contract for this allows for you to continue to show your home to other buyers. If a second buyer comes along that does not need to sell a home before they close on your and you negotiate a price and other terms, then you have to give the first people a period of time (that was negotiated in the original contract) to remove their contingency and proceed to closing. If they can do this then the second people are left in the cold.

If you accept an offer contingent or not, you have to let future lookers know. That reduces drasticlly the people that will be looking at your house.

I would not accept an offer from someone like this if they haven't yet placed their home on the market. I might not accept and offer like this from someone that has placed it on the market and not yet found a buyer (it would depend on how saleable I judge their home to be). I probably would accept an offer like this if the buyer has already negotiated a contract and just waiting to close. (how good is their buyer? Have they already inspected? When will they close? )

They would have controll over what they price their home, how well it shows, how easy they make it to show, how well it is marketed. This would affect me because it all determines how long it will take for my house to close.

Answer 4

I assume the contingency you are referring to is finding another house.

A Realtor in my office just listed and put the house under contract in a week, and the sellers have a contingency about finding a suitable house. They haven't even looked yet, so they are now in panic mode to find a house.

Now they are in negotiations with the buyers to set a closing date, the buyer's financing is only in place until a certain date, it is a bit of a mess.

You can write your offers on a new house with a contingency that you have to sell yours first, but that is a weak offer. Most sellers won't accept that.

Answer 5

Your Realtor isn't extremely clever besides as giving you very damaging suggestion. i'm SO happy you're smarter than she is. it relatively is what i might do if i became into your Realtor. i might placed your homestead on the MLS (no person says that they ought to placed a lock field on your homestead....get it?) that way you are able to technically say it relatively is "on the marketplace". each and all the sellers pick to work out is a replica of the itemizing contract and the MLS printout as data it relatively is on the marketplace. i might so write the contingent supply alongside with data of any and all cutting-edge sales interior the final 6 months for example how in many circumstances they have been on the marketplace in the previous they bought. If I have been representing the broker...it relatively is an extremely stable supply if the homes sell as today as you're saying they do. submit to in ideas that contingent supplies in many circumstances enable for the sellers to proceed to marketplace the homestead with a 40 8 to seventy two hour kick-out clause to offer you a hazard to get rid of the contingency, ought to a back up supply are available. Alot of persons have published that have not have been given any thought of ways a contingent settlement relatively works...that's no hazard for the broker whatsover if the supply is presented properly....b/c the kickout clause supplies the customer one final possibility to get rid of the contingency in the previous the broker can circulate-directly to the backup supply.

Answer 6

Well, you wouldn't know for sure that your house sale was going to be completed, so if you put an offer on another house while it's still outstanding, be sure that your offer is contingent on your old house sale being completed.