I had my personal residence on the market for a day and have been presented with a full price offer. Unfortunately, the offer is contingent upon the sale of the buyers home. My question is whether or not it makes sense to accept the offer? If I did, what should be connected to the acceptance?
Here's what I know:
- Buyer to supply lender pre-approval letter w/in 24 hours after offer acceptance.
- Buyer has 30 day contingency clause for getting loan and they want to keep the $500 earnest money if they don't get the loan
- Buyer want 12 days to have inspections completed
I don't know the condition of the buyers' house or their asking price, etc. If they're not realistic in terms of their pricing, etc, they could be sitting on their home for a while. Since they have a home sale contingency in play I'm not certain what is considered "typical". Any advice is greatly appreciated.
Hi @Dave Myers With it being on the market only for one day, I would counter and extend the deadline to reply date out a couple weeks. Let the 'listing' (is this with a realtor?) season for 10 days. In the meantime, they can submit the lender approval letter, give you more info about their house and you can see what else comes along. I would always be wondering 'what if' if I accepted a first or second day offer. Especially one with this contingency. Good luck!
@Dave Myers Also you need to get help and draft language to have a "kick-out". You want a Contingent Contract with a Kick-Out. This will allow you to be under contract with them, but still keep your house on the market. If another qualified-buyer comes up and wants purchase, the initial offer is usually given a time period (i.e. 72 hours) to decide if they want to remove their home purchase contingency and go through with the contract of buying your home(even without selling their house yet) or use the contingency clause and let you now they want out of the contract. Get help with the wording. It gets tricky. Get help, get help.
Not a lawyer, no legal advice given. Just explaining some basic RE contract terms.
@Steve Vaughan - That's a great suggestion. By providing more time to accept the offer, I won't lock out other offers at the start of the selling process - if a solid offer comes along in the meantime, I'll be able to take advantage of it and it motives the other side to move quickly. Thanks again.
@Sonya Stovall - I'll check with my agent to see if that's something that she's used in the past. I have to admit that I'm a bit disappointed that it wasn't something that she mentioned to me when she gave me the offer. Awesome.
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