Posted by: Meena Gujral | April 30, 2008

Pros and Cons about taking and giving Contingent offers when selling and buying in Fremont

We are talking about a chain effect here. So you have a buyer who is trying to sell his property and buy yours and then you are buying a house contingent upon the sale of your home. And then maybe the seller of the house you are buying needs to buy a house contingent upon the sale of his house. It can certaily be done, however it is not going to be very easy in today’s market.

I had a similar situation with 4 deals like the above senario but that was 2 years ago. It caused a lot of stress because of hurdles in one deal or the other but all escrows did close. But like I said, it was 2 years ago and the market was a lot better than it is today.

As far as the offer you get on your house, please make sure your agent does a realistic market analysis on your buyers house to make sure he is asking the right price. If he is not realistic, I would not waste my time in taking his offer.

Keep in mind that even if you give this buyer a 72 hour release clause (I would be happy to explain what that is if you need to know), you are taking away from the desirability of your home since some agents don’t want to deal with a home that already has a contingent offer on it especilly when they have so much to choose from.

And then when you are the buyer and make your offer contingent upon selling your home, you need to provide your pre-approval and the first buyer’s property information as well as his pre-approval letter so that the seller there will be comfortable taking your contingent offer. I know all of this may sound complicated but like I said it is certainly possible. Everyone needs to be patient, flexible and willing to give extensions if needed. But be prepared that if one transaction falls apart, all them do as well.

Hopefully the buyer buying your property does not accept a contingent offer on his house.

If I can be of any help, please call me at 510-279-9580.

Thanks

Meena Gujral,
Help-u-Sell Achievers Realty
40083 Mission Blvd, Fremont
Ca 94539 – Thu Apr 24 2008

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