Buyers and sellers differ on their view of offers that are contingent on the sale of the buyer’s home. According to the Multiple Listing Service, in Chisago County there are only 11 out of 290 Active listings that are sold contingent on the sale of the buyer’s home. There have been many offers submitted to sellers with this contingency request, only to be rejected.
Much to the surprise of many sellers; showings slowdown in July. Think about how busy your July schedule is with vacations, friends, weddings, reunions, etc. In Minnesota, July is the best month of the year for most of us. Buyers have the same schedule, and they don’t want to spend their weekends going to open houses or scheduling showings. July can easily move from a seller’s market to a buyer’s market.
On the other hand, sellers seem to think July is the best time to list their home. This could be true for waterfront homes, as visitors to the lakes are intrigued and want to see what is available. Senior housing, and first-time homebuyer homes are typically in demand year-round, but the rest of the homes tend to have longer marketing times in July, which brings a lot of price reductions.
If a seller accepts a contingent offer, the status on the Multiple Listing Service shows that the listing is Active contingent on the sale of the buyer’s home. The property can still be shown to other buyers and the contingent offer can be bumped by a non-contingent buyer, should the seller elect to do so.
It is true that if a seller accepts an offer contingent on the sale of the buyer’s home, that showings typically slow down. But if there are very few showings anyway, it may make sense to consider a contingent offer instead of reducing the price to compete with the other listings on the market. Contingent buyers are usually very serious about the property they make an offer on, which can mean a higher sale price for the seller, and the buyers are motivated to get their home sold quickly.
When my sellers consider an offer contingent on the sale of the buyer’s home, I do a market analysis on the buyer’s home, and help the seller’s decide if the buyer’s home is priced competitively, we review the neighborhood activity, and the likely-hood of a quick sale.
Every property is different, and there is no set rule for dealing with contingent offers. An experienced agent can provide you with the best advice on contingent offers for your home.
Ask the Real Estate Agent is a weekly column by Cheryl Kempenich of Coldwell Banker Burnet, who lives and offices in the Chisago Lakes Area. Submit your questions to email@example.com. All information is deemed reliable but not guaranteed. For legal assistance consult an attorney.