When It’s Advantageous to Accept a Contingent Offer


Manage episode 292379631 series 2359827
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Here’s when accepting a contingent offer might actually benefit you. Why on earth would a seller—especially in a low-inventory seller’s market like this —accept a contingent offer from a buyer? In most cases, it’s not a good idea to do so. There’s just too much risk involved, especially when there are so many other options. Most sellers just opt for the offer with the fewest challenges. In certain cases, though, it might be better for you to accept a contingent offer. “This high level of motivation can lead to a simple, clean transaction with a buyer who just needs to find a place to live.” For example, let’s say the buyer is in escrow on their current home, meaning the contract is signed for someone to buy it and all contingencies are removed. Now they either have to find a new place to move into or wind up homeless. Furthermore, if they don’t find a new home, they risk losing the buyer for their current home. What’s nice about these buyers is that they already have their home sold and are getting pushed out of it. They’re desperate to find a new place. If they’re interested in your home, that’s a good sign that they’re highly motivated to buy it. How else does this benefit you as a seller? Once you accept an offer, in most cases the buyer will request inspections and repairs. However, if you know the buyer is highly motivated and doesn’t have enough time to find another home, you’ll likely be able to concede nothing in terms of repairs during the negotiations. This high level of motivation can lead to a simple, clean transaction with a buyer who just needs to find a place to live. You might even be able to sell your home as is. Of course, you’ll have to make certain that all contingencies are removed from their home sale, but if that’s the case, the bottom line is that it can be very advantageous for you to accept a contingent offer. As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’m happy to help.

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