Making a contingency offer more palatable to the seller

by Laurel Grandle, REALTOR

Many times a homeowner will want to find their next home before selling their current one. They are afraid they won't find what they want and they'll be "homeless". Being "homeless" in this instance isn't all bad. The downside is that the owners have to move twice, but if they sell first, they have their cash and can rent until they find THE house for them. They won't be pressured. However, most folks don't want the expense and inconvenience of two moves, so they go househunting before their current residence is sold.

And they find IT...THE house. But carrying two mortgages is difficult if not impossible for most buyers, so they make an offer to the seller contingent upon their current home selling. Now their agent has to sell it to the owners of the home they want to buy. This can be challenging!

There are several ways to make this offer a bit more acceptable to the owners. The buyers should already have their current home on the market and priced competatively. The competitive market analysis of the buyer's current home should be presented to the owners of the target home, so that they can feel confident that the prospective buyers' home is well priced and in a good area. A 24 hour first right of refusal clause is typical in this area.

This means that the target home stays on the market and should another, acceptable offer be received from qualified buyers, the first buyers have 24 hours to remove the contingency or let the second offer for purchase become primary. Sometimes, the first buyers really can purchase without selling, but would prefer NOT to carry two mortgages; they may, when pushed, be willing to proceed to closing on their next home before the current one is sold.

The offer for purchase can be constructed with a moderate earnest money deposit with an agreement that the earnest money will be increased and become non-refundable at the time of contingency removal. Such an offer usually convinces sellers of a buyers' sincerity.

With so many foreclosures on the market right now, our prices are a bit depressed (but nothing like the 60++% drop over the previous 5 years that some California markets are experiencing); so many have lost houses that there is a demand for rentals. If the buyers have sufficient liquidity and income, they may decide to purchase and then lease their current home until housing conditions improve. ALL of this is dependent upon lender approval and a prudent REALTOR will be working closely with a very experienced and knowledgeable lender before making any suggestions.

This is surely not a job for an "order taker"... a good REALTOR is a SALESMAN: A REALTOR must sell every listing at least twice: once to the other REALTORS so that the home will receive showings and hopefully offers from various prospective purchasers and they must sell it to prospective buyers. TWO different marketing strategies at the same time. AND then when the offer comes in, the REALTOR must be able to negotiate with prospective buyer and seller and be inventive enough to create a win-win contract to keep all parties happy. It's not easy but it is very rewarding to help families move into new homes. Most buyers are happy and very grateful for the time and expertise provided by their professional.

Please feel free to call me anytime you have a real estate related question or suggestion. I can be reached on my cell at 865 389 2551 or e-mailed at: [email protected].

visit my web site: http://www.LaurelGrandle.com. Together we can make your dreams come true!

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Laurel Grandle sells homes throughout the East TN Area, including Knoxville, Karns, Farragut, Halls, Powell, Loudon County, Knox County. She specializes in Lake homes, Luxury homes, Historic homes, New Constructionand is an expert at matching buyers with the right house, regardless of the area or price range, she has over 25 years of experience and has helped thousands of clients with their real estate needs.

Here is what some of her clients have said about her recently, “Laurel has an unlimited amount of patience. My family has very specific needs and she understood them and worked with us until we found the perfect home at the right price. I don’t think anyone else would have done that for us and we’ll always be thankful we found her and worked with her. She’s wonderful!” Margo

“Laurel has accommodated us on many occasions very quickly, as our schedules change all the time. She was always understanding of the time and date changes and she helped us find a great house.” Williams

“Thank you! It's wonderful having you as our agent and we both think you're a terrific person. Bob was right when he said we'd love you.” Joe

“Laurel really knows the area and the market. She didn’t waste any time…she showed us what we ask for in the location we wanted and made the whole move a very good experience for our family”. Robert

“Before we wrote an offer, Laurel did a detailed market analysis for us and discussed it with us so we understood what a fair price would be. She went over the entire contract in detail and clarified everything for us. We purchased with confidence and we’d never use anyone else IF we ever decide to sell!” Anne

Exit Realty Knoxville (each office independently owned and operated) is your number one resource for all your real estate needs, including listing, sales, referrals; our EXIT agents are committed to serving you—put us to work for you: 865 389 2551

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