Reply Hey Mom! Learn more about the Gerber Life Insurance Grow-Up Plan!
 
Thread Tools Display Modes
Old 07-08-2013, 02:13 PM   #1
Kiliki's Avatar
Kiliki
Registered Users
Formerly: kr***y
seller
 
Join Date: Jun 2007
Posts: 9,397
any words of wisdom about selling/buying with contingency?

We are looking to relocate. We have a place to stay during the transition from one place to another, but would prefer to stay for as short a time as possible.

So, we are thinking after we get our house on the market, we will put in an offer on a property we really love, with a contingency. (so, "I'll buy your property for X dollars when mine sells")

But I know nothing about this.

I, of course, will get more info from the Realtor when we have one. We aren't ready to list the house just yet, it needs a little cosmetic help first (new paint, new trim, etc). So, for now, I'm just gathering info.

Anyone done this before? What was your experience? Is this a good idea? Bad idea? Is it easier to sell first, re-group, then buy?

Advertisement

Kiliki is offline   Reply With Quote
Old 07-08-2013, 03:23 PM   #2
Corgi's Avatar
Corgi
Registered Users
 
Join Date: Mar 2012
Location: Utah
Posts: 473
Re: any words of wisdom about selling/buying with contingency?

The market that you are looking to buy in will play a huge part. Here, right now, homes in certain price ranges are going FAST, so the likelihood of an offer like that not being outshone by a different offer with no contingency are slim.
We are in the process of buying and selling right now, and what was suggested to us by our realtor (and what we ended up doing) is listing our house, and then once we were under contract with a buyer, we went and found the house we are in the process that we are buying. Rather than making a contingent offer, we lined the dates up in a way that they fell just after the dates in contract for the house we are selling. For example, the Due Diligence deadline (that's when buyers can back out without penalty) on the house I'm selling falls three days before the same deadline for the house I'm buying. This allowed us to make a solid offer on the house we are buying, with no contingency, but the security blanket of being able to back out if anything went wrong with the sale of our home. We have a two week leeway between closing dates because we were told the original date rarely sticks.
The only downside was that the moment our house was under contract, the clock was ticking to get under contract on a new one! It's a really stressful process, buying and selling homes, but worth it once it's all over.
Best of luck!
__________________
~Linsey~
Married to my best friend Jon, loving life with our pack of Great Danes, 1 goofy Boxer, and
SAHM to
Chase, born Oct 2013 at 29weeks, HOME where he belongs after 59 long days in NICU.
expecting
someone new Nov/Dec 2015.
Corgi is offline   Reply With Quote
Old 07-08-2013, 08:08 PM   #3
kimb96
Registered Users
seller
 
Join Date: Apr 2006
Posts: 5,395
Re: any words of wisdom about selling/buying with contingency?

Like pp said, it will depend on the market. The thing about offering a contingent offer is that the seller can still sell the house if they get an offer that is non contingent. That is how we got our house. It had a contingent offer on it and we came in and made an offer with no contingency. Here though, they have to give the other buyers a chance to change their offer to one without a contingency. They could not, so we got the house.
__________________
Kim

Mama to Ethan
kimb96 is offline   Reply With Quote
Old 07-08-2013, 08:55 PM   #4
Teddyandnick's Avatar
Teddyandnick
Registered Users
seller
seller
 
Join Date: Oct 2011
Posts: 1,651
It really does depend on the market. Our situation was complicated, but it worked out best for us. We were having a builder custom build a house for us with a contract for him to buy our old house once the new one was completed unless we sold out house first to another buyer. We had people who put a contract in on our house and our real estate agent made sure to put a contingency clause in there that if our deal on the custom house fell throgh that we would back out of selling our house. Unfortunately before our custom house was completed our builder went bankrupt and completely shut down his business. The bank that owned the property was not willing to work out a deal that was financially feasable for us to buy the new house and have a new builder finish it. So we had to back out of the contract on our house.
Teddyandnick is offline   Reply With Quote
Old 07-09-2013, 08:29 AM   #5
Kiliki's Avatar
Kiliki
Registered Users
Formerly: kr***y
seller
 
Join Date: Jun 2007
Posts: 9,397
Re: any words of wisdom about selling/buying with contingency?

Ah, thanks everyone!

I guess we won't know until we meet with a realtor... boo
Kiliki is offline   Reply With Quote
Old 07-09-2013, 09:37 AM   #6
sunlightmlp's Avatar
sunlightmlp
Registered Users
 
Join Date: Oct 2012
Location: Michigan
Posts: 156
Re: any words of wisdom about selling/buying with contingency?

If you do put in the contingency, make sure you also add a clause asking for right of first refusal. So, if the seller gets another offer without contingencies, they first must give you the chance to remove your contingency (within an agreed upon time, like 3 days) before they can accept the other offer. We did this when we bought our current house. It didn't end up mattering, because they did not get any other offers, but it was nice to have the security of knowing we wouldn't lose the house.
sunlightmlp is offline   Reply With Quote
Old 07-09-2013, 09:39 AM   #7
Kiliki's Avatar
Kiliki
Registered Users
Formerly: kr***y
seller
 
Join Date: Jun 2007
Posts: 9,397
Re: any words of wisdom about selling/buying with contingency?

Quote:
Originally Posted by sunlightmlp View Post
If you do put in the contingency, make sure you also add a clause asking for right of first refusal. So, if the seller gets another offer without contingencies, they first must give you the chance to remove your contingency (within an agreed upon time, like 3 days) before they can accept the other offer. We did this when we bought our current house. It didn't end up mattering, because they did not get any other offers, but it was nice to have the security of knowing we wouldn't lose the house.
yes! Thank you! GREAT advice!
Kiliki is offline   Reply With Quote
Old 07-09-2013, 01:30 PM   #8
Nerissa
Registered Users
seller
 
Join Date: Feb 2011
Location: small town USA
Posts: 5,419
My Mood:
Re: any words of wisdom about selling/buying with contingency?

Quote:
Originally Posted by sunlightmlp View Post
If you do put in the contingency, make sure you also add a clause asking for right of first refusal. So, if the seller gets another offer without contingencies, they first must give you the chance to remove your contingency (within an agreed upon time, like 3 days) before they can accept the other offer. We did this when we bought our current house. It didn't end up mattering, because they did not get any other offers, but it was nice to have the security of knowing we wouldn't lose the house.
Very good advise.

When we sold our house and were looking for another, it wasn't a great selling market. Our Realtor advised against any contingency because of the market unless we really really like a house. We didn't even start serious house hunting until our house was under contract.
__________________
wife and mom-- no other special labels. Just trying to do the best I can.
Nerissa is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Copyright 2005 - 2014 Escalate Media. All Rights Reserved.