Low-price sellers feel the bounce back — their higher-price offer comes with buyer-sale contingency
Q: We listed our home for sale on the low side, planning multiple bidding by homebuyers. On Saturday, we only received one full-price offer on our house that expired at 6 p.m. that day. We rejected it outright. Our seller’s agent told us to withdraw our property from the market for two days. Our seller’s agent then told us to list the property at a higher price that we would accept. The buyer’s agent was informed of our plans and according to our agent was very belligerent. Our seller’s agent listened to the buyer’s agent vent, and then informed the buyer’s agent that he had two days to write an acceptable offer. Tonight, we received a much higher offer proposed by the same buyers but is now contingent upon the closing of their personal residence, which is in escrow and due to close in nine days. Is it true that no one accepts offer contingency upon the sale of a buyer’s property?
A: No. This extremely helpful homebuying and home-selling strategy happens every day, all day, in America. Unfortunately, it has been given a bad name in the fast-paced ninecounty Bay Area region. Regardless, I’ve successfully represented homebuyers in multiple-offer situations that were contingent upon the sale of their property in hot and cold markets. Granted, as a rule, most sellers and agents will prefer a sale with homebuyers who have a loan approved and cash in the bank. In California, to help agents navigate the narrative of this type of transaction we have the California Association of Realtors form Contingency For Sale of Buyer’s Property (C.A.R. Form C.O.P.). In the Bay Area, licensees also have the Silicon Valley Association of Realtors form PRDS Sale of Buyer’s Property Contingency Addendum (Form PRDS SBP). These forms are both a checklist and road map to the strength and duration of this home sale contingency. Representatives for homebuyers can check the appropriate box that the buyer’s home will be ready for the market in nine days, or, has been under contract for nine days, or will close escrow and have the net proceeds in nine days. The latter is as strong as it gets.
Have a question? Know someone who is thinking of moving? Realtor Pat Kapowich provides turnkey services including relocation, staging, market analysis and strategic planning. 408-245-7700 or Pat@ Siliconvalleybroker. com. Broker License 00979413.