When you sell your home, are you willing to take the buyers’ existing home in trade? Probably not—right? So, what will you do when the buyers say, “We want to purchase your home, but must sell ours first…”?
If you accept an offer with that condition, it is called a contract of “contingency”. The contingency, of course, is that the buyers are not obligated to complete the purchase of your home – until theirs sells. That could leave you at the mercy of the buyers, or it may not. Don’t raise the caution flag too quickly. When confronted with a “contingency” offer, ask your real estate representative to explain the positive as well as the negative aspects of accepting the offer. Ask questions. Is the purchasers’ home currently on the market? Has it been listed with a real estate company? Is it being actively marketed? Have there been any offers?
If the answer to all four questions is “No”, it might be wise to continue marketing your home. If the answers are “Yes”, it may be that the contingency is only a short-term hurdle to the successful sale of your home. Each home purchase and sale is unique, and includes many variables. To benefit from an informed decision, depend on your representative to explain the consequences of each purchase offer received.
PDF Download: Ready to Trade
Note:This article was originally published on this site on April 9, 2012. The text has been updated and a PDF version added.