Contingent Offers in a Hot Real Estate Market
Contingent offers in a hot real estate market that Shana that’s me. Let’s discuss it. We’re talking about contingent offers and are they bad or are they good? I don’t know, Shana.
I don’t know. You know, so what? Let’s define everybody thinks this way. And I always like us to stop and try to think and play devil’s advocate and go the other way.
Okay, so let’s let’s define a contingent offer. Contingent offer means you must do something before you can close on the property. So in this case, let’s talk about contingent upon the sale of another home. Let’s use that contingency as our example.
So depending right. If they say, you know, we haven’t met with the realtor yet and we don’t know how much our home is worth, and that’s maybe a reason for a pause. But if someone is putting the offer in.
If a contingent offer, if you have multiple offers and you’re looking at a contingency.
You’re the selling agent. Listing agent. And you have multiple offers OC the person. Think about this. The person who has their home under contract. Yes, yes. There is a little risk because it’s a domino effect of something happens.
But if you do a little due diligence and you find out that, hey, that home is set to close in two weeks, we’re past this, this and this. It’s a cash offer. No, no, no contingencies left. I would strongly consider it because they probably have the most motivation to close on the house. They’re probably not looking at other things right there. They’re bound to.
Because sometimes people put in multiple offers on different homes. Right, and then pick which one they want if they get them. I’ve heard of an agent having two offers get selected and I was like, Huh, that’s interesting. Yeah. Anyways.
Maybe they can buy two. I don’t know. But so I just think don’t just write them off from the get go, do a little research and take the time to understand what is what does that contingent offer look like? Because I think essentially some of the contingent offers contingent upon the sale of a home could be your strongest borrower buyers just because they are highly motivated.
You know, think if they’re out of state, you know, you need to talk to the realtor. You need to understand what’s happening on the home. Don’t just say, oh, my broker said, take a contingent offer. They’re great. No, you need to do a little research. But do it do it for your client because, you know, we’re seeing a lot of homes come back on the market. We truly are. And why is that?
I think cold feet, maybe their interest rates changed. You know, there’s a lot of factors out there right now that we’re dealing with. So, you know.
I would agree don’t be hating on the don’t be contingent offers. Just say.
It. There we go, ladies and gentlemen. Yeah. So if you do that too, you can put contingent upon or you accept that offer as a listing agent, you have a kick out clause which you should have the kick out clause. Right. You can still market your home, still market it and invite people have showings and get, you know, get back offers in the event that something did happen.
But I don’t know, I’m a fan. Start thinking about it. It’s like the back up offer takes work and effort. Well, I don’t know. I think backup offers. I would I would really love to have the stat of how many backup offers ended up being accepted and in closed. I think that’d be great. I don’t know how we can get that stat, but I would love it.