contingent offer Archives - Living Room Realty

What Does Contingent Mean in Real Estate? A Complete Breakdown for Buyers and Sellers

Posted on October 10, 2024October 9, 2024 by Will Sing

In the world of real estate, the term “contingent” can sometimes leave buyers and sellers scratching their heads. Whether you’re navigating the buying process or preparing to list your home, understanding contingent offers is crucial. In this post, we’ll break down what it means to be “contingent” in real estate, how it affects you as a buyer or seller, and what potential scenarios you could face.

What Is a Contingent Offer?

A contingent offer on a house means the buyer has included a protective clause in their contract. This contingency gives the buyer an option to back out of the purchase if certain conditions are not met. Typically, a contingent offer involves the buyer needing to sell their current home before they can finalize the purchase of a new one. Think of it as a step in between “active” and “pending”—the property is not quite under contract yet, and there’s still an opportunity for other buyers to step in.

If you’ve heard the term “bumpable buyer,” it means that the current buyer’s offer is contingent on selling their home, and another buyer could potentially “bump” them out of the contract. Essentially, it’s a state of uncertainty, and another buyer might have a chance to swoop in.

What Does Being Contingent Mean for Buyers?

For buyers, there are two key scenarios involving contingent offers:

You Are the Contingent Buyer: You want to buy a home, but you need to sell your current property first. This makes your offer contingent on that sale, which can sometimes be a hurdle. If another buyer who is not contingent decides to make an offer, you will usually have 48 to 72 hours to either remove your contingency or lose the property.
You Are a Competing Buyer: You want to buy a property that already has a contingent offer. In this case, you can put in an offer, which then triggers the “bump clause.” The original buyer (who is contingent) will have a set amount of time to remove their contingency—if they can, they go from “contingent” to “pending,” solidifying their contract. If they cannot, the seller is free to accept your offer, and the contingent buyer is out.

What Does Being Contingent Mean for Sellers?

If you’re selling your home and receive a contingent offer, it’s important to understand the potential risks. If the buyer needs to sell their current home, this could delay your closing timeline. For instance, if their home takes longer to sell than expected, you might need to extend the closing date, which can be problematic depending on your plans.

It’s also essential to assess the buyer’s preparedness to sell their current property. Are they already on the market? Are they prepped and ready, or are they just starting? The more ready they are, the less risk you’ll face. Given the additional uncertainty, contingent buyers often need to make a stronger offer to compensate for the risk you are taking.

Key Takeaways

Contingent Offers: Buyers need to meet specific conditions, often involving selling their current home.
Bump Clauses: If you are the contingent buyer, be prepared to act quickly if a competing offer comes in.
For Sellers: Contingent offers can mean more risk and longer timelines, but they might come with a higher price to compensate for that risk.

Watch the Full Video: The REAL Difference Between Contingent and Pending

If you have any questions about buying a home or need more personalized advice, feel free to reach out to me. Connect with me on YouTube, Instagram, or Facebook.

For a more detailed consultation or to get started on your home buying journey, schedule a free strategy session here. You can also access my Free Buyer’s Guide to help you through every step of the process here.

Sell A House and Buy A House at the same time!

Posted on June 26, 2023 by Living Room Realty

Let’s talk about a Sell/Buy situation, as this seems like a pretty scary endeavor at first thought, but with the right plan, tools, and people, this process can be seamless.

PLANNING

Once you’ve decided it’s time to move on to your next house adventure, but you need to sell your current house in order to pay for it, CALL YOUR AGENT, and then call your lender!! These are the first steps. The second step is easy enough – your agent will do a walkthrough in your home that you need to sell. This will be the time when you can discuss your ideal timeline, where and why you’d like to move, and your agent will provide tips to get your house sell ready. This is such an important part! Since you’ll be needing to sell to pay for your next house, the selling element is crucial. You want the most eyes seeing this dialed in, put together, clutter-free, priced right house. It needs to be easily accessible for showings, open houses, and both the inside and out needs to be looking it’s best. You’re joining the dating pool, and you need to find the new lover of this house. First impressions are EVERYTHING!

I would recommend having a list that you all, (you and your agent), can see and make adjustments to as you check off the to-do’s. Something like Trello works wonders! Do the inexpensive, but impactful things such as updating light fixtures, shampoo that carpet, add some mulch and new flowers to the garden. Need contacts, contractors, or handyfolks to help, we have the resources! Create a realistic timeline on getting all the things done, then one to two weeks to list, have another walkthrough with your agent. Planning for selling is so very important. I want to ensure my seller clients are getting the most bang for your buck in prepping their property, but also that once we “go live!” with the listing, that it sells for top dollar to some excited buyers. That brings us to…

PRICING TO SELL

How long do you have to move? Did you just find the perfect house, but you haven’t even listed yet? Did you list, but the house isn’t selling, and you really want to put an offer on your dreamhouse? The price can be the selling or sticking point in this already challenging situation. Your agent will find some comparable sold properties that have sold recently in your area with similar criteria to your house. Price too high and it sits, price just right and it sells fast. List at the right time, et voila! We like to think it’s a bit of an art.

BEGIN THE HOUSE HUNT IN EARNEST

Now that your house is listed, or about to be listed, (within a few days), the house hunt begins in earnest. Time to go house shopping, which is so exciting! Since you’ve listed your home, the chances of competing are a bit higher as a contingent offer. If you’re pending on your house, even better! However, something to consider when writing an offer while being contingent, is that it’s so important to know what that seller needs, and then deliver and then some. The terms and purchase price of your offer will be crucial to beat out the other offers that may not be contingent.

HAVE A PLAN B

As with most things in real estate, predictions can be precarious. Of course, we want everything to go seamlessly, without too many hiccups or hurdles, but sometimes things just happen. While selling your house to buy your next one, having a plan b for the just in case moments is so very important. For example, say you sell your house, but you still haven’t found the next one. A very valid concern! Consider putting your things in storage and getting a short term rental or Airbnb. Maybe a stay with some family and friends for a while until you find that dream house. Never stop the house hunt no matter how exhausting it may be. It will be worth it in the end. Knowing you have a plan b will help take the pressure off an already very much pressurized situation.

All in all, your agent – whether it’s me or someone else just as fabulous – will be your guide, therapist, planner, manager, and advocate throughout this whole endeavor. Ready to list? Want to see the ‘just listed’ and then soon after the “offer accepted” posts? I’m here to help make your dreams come true!

Janelle Freeman, Broker at Living Room Realty

Janelle Freeman, Realtor (@janelleisrealestate) | Instagram

Will My Contingent Offer be Accepted?

Posted on June 6, 2022June 6, 2022 by Living Room Realty

This past weekend, I hosted an Open House at a well-maintained Milwaukie home. The home boasted a superb location, single story layout and thoughtful upgrades. To say there was good turnout from buyers is an understatement!

To my amazement, most of the home shoppers were looking for their next home without having sold (or listed) their current home first. When you put in an offer on a home that hinges on you successfully selling your current home, it is called a contingent offer.

The insanity that was the 2021 Portland housing market meant that buyers making contingent offers on homes were consistently turned down over non-contingent offers. With fewer moving parts and less risk for the sellers, non-contingent offers were favored in an extreme seller’s market.

Fast forward to today – there is some shifting in the market, and there’s a *small* amount of wiggle room for contingent offers. Still, it’s important to remember how crucial strong financing is in getting your offer accepted.

Seller’s agents are looking out for their clients by asking for proof of funds from buyers offering cash or large down payments and pre-approvals from lenders to minimize the risk for their sellers. If a contingent offer is accepted, they will most likely require you to list your home by a certain date (if you haven’t already), place you in “Bumpable” status (meaning the seller can accept a different offer if one comes in), and even put a deadline for when you need to accept an offer on your current home.

If you plan on making a contingent offer on your next home, I suggest you have a solid marketing plan for your current home already in place. Start working with a real estate agent now, so you can hit the ground running if your offer is accepted!

Contingent Offer in Lake Oswego

Posted on February 22, 2020 by Living Room Realty

When Deanna and Andy came to me and wanted to sell their gorgeous home in Southwest Portland to find a new home in Lake Oswego before their young son started elementary school this coming year, I was excited. Their home in Southwest went for $30k over ask and we had multiple offers within 12 hours.

Their criteria for the new home was: weird. And by weird, they meant, architecturally unique (see above photo).

We ended up finding something before their house in Southwest was on the market so we wrote contingent. And our offer was accepted!

Note: an offer that’s written “contingent” means that the Buyer has to sell a property in order to buy a property.

We were days away from listing their house when we received news that they had been “bumped”. With contingent offers (also called “bumpable”), the Sellers are still able to accept offers from other Buyers and if there’s one they like, they can “bump” the Buyer. Unfortunately for us, there were two offers, so we were moved to the second back-up position.

This tenacious duo had faith. We continued looking at other properties and put their home on the market, and like so many “weird” or architecturally significant homes, the Lake Oswego one they loved had it’s quirks, so we were eventually moved back up to first position. It was a roller coaster! But, now they had sold their house and bought an incredible home in Lake Oswego.

See this article from a 1976 Better Homes and Gardens. It’s truly a 70’s GEM!

One of the best rewards of this duo’s patience is that we ended up negotiating for well under ask and the house appraised well over their paid price. Timing was everything.

Interested in an architecturally significant home? Reach out.

Interested in owning a home in Lake Oswego that has an easement (like this one that has three!)? Learn more about easements here.

Want to read Andy and Deanna’s reviews, head here.

The Winning Contingent (Offer)

Posted on December 20, 2019March 23, 2020 by Andy Meeks

In an ideal world, our homes are our source of stability, our base of operations, and the nerve center from which our lives proceed and evolve and change. So it’s not uncommon that when those life changes require a new home that better fits those changing needs, the question arises: how do I purchase a new home if I need the net proceeds from the sale of my existing home in order to purchase a new home?

That’s when a contingent offer situation comes into play. In addition to generating the funds for purchasing the new home, a contingent offer allows you to shop for a new home while still living in your house; if the timing works out, you only move once. But, and this is a big caveat, it can be a complex and time-consuming process, so it’s important to know what to expect prior to getting started.

And that’s what I just helped my clients Peter and Erin do: we navigated a very competitive segment of the NE Portland market, found a house that fit all of their future needs in terms of size, location, condition, and price, and were fortunate to have their contingent offer accepted and moved into first position. (Their offer was originally in a back-up status before the first buyers withdrew their offer.) We crafted a strategy that positioned them for success, and it was a complicated process of meeting multiple milestones with two sets of parties, and keeping everything organized and synced up.

Let’s dive into the various details of a contingent offer situation, and how to develop a winning strategy:

First of all, contingent offers are just like all other offers to purchase a home, except for the condition of your own home sale. Because of this condition, contingent offers are less attractive than most other offers. In a competitive market such as ours, it’s a big lift to ask sellers of a home to accept an offer that hinges on a home that hasn’t yet been sold or perhaps even put on the market. In Peter and Erin’s case, they were not able to put their house up for sale until they secured an accepted offer on a new home. With two young boys and a dog, and with Peter working from home, it would have been very inconvenient and expensive to sell their home first, and then look for a home – with no guarantee of a timeline for finding that new place.

Fortunately, after more than 15 months of searching, they found their ideal place and were ready to make an offer. Prior to submitting the offer, I spoke with the listing agent to explain Peter and Erin’s situation. This is something I do with all of my clients, but it was especially important here to attempt to find some stronger bond and connection between the sellers and my clients. Accepting a contingent offer in many ways is an act of deep trust, and working to ensure that trust was in place early in the process was crucial. Fortunately, the sellers shared a lot in common with Peter and Erin and their family, and remembered themselves in that same situation years ago.

Peter and Erin’s offer stated that upon acceptance of their offer, or placement into first position, they would put their home on the market within one week. That meant a lot of uncertainty if and when we would put their house on the market. I counseled them to expect about 2-3 weeks before we had greater clarity on the first position buyers. It takes about this long to work through the inspection period and subsequent negotiations, and this is often where a deal will fall apart. Indeed, about two weeks later, we got word that the buyers backed out, and Peter and Erin were moved into first position. We then had one week to get their house ready to be listed, and fortunately I had already helped them start to prep with decluttering, organizing and cleaning, and I had all of the relevant data on their house ready to go. We just needed to get photos taken, and we went live on Halloween day…auspicious, perhaps, but not spooky!

Their offer also stated that they would notify the sellers of their decision to move forward or terminate within 28 days. From my market research, we knew that 23 days on market was the average for a house like Peter and Erin’s, and I was confident that we’d find a buyer in that time period. Since the new house was also in this same market area and segment, the listing agent understood that a 28 day promise was reasonable and supported by the data. Indeed, we went pending 21 days later.

Here are the basic components of this unique contingency:

If your home is not yet listed for sale, you must provide a date when this will happen. Obviously, the quicker, the better.

You will then provide a deadline date by which you will accept an offer on your home.
- This is where your broker must have a solid understanding of the average days on market for similar homes to yours in your neighborhood, in order to provide a clear timeline to the sellers on how long it should be before you accept an offer on your existing home. Of course, the shorter, the better.
- If that date passes without you receiving an acceptable offer, you then have two standard choices, and one potential option:
  - Remove the contingency and move forward with your purchase.
  - Terminate the offer by letting that date pass without further action. If you terminate the offer in this manner, you will receive your earnest money deposit back.
  - A third potential ‘option’ is that you negotiate to extend this date with the seller — this ‘option’ is not guaranteed and shouldn’t be part of your plan.

The seller who accepts your contingent offer is still allowed to continue to market their home for sale, and even accept other offers that are more attractive than yours. Your status as a contingent buyer puts you in what’s called ‘bumpable status’, although sometimes the sellers will just leave the house in a pending status and not provide other potential buyers with the opportunity to view the home.

If the seller does receive a better offer than your contingent one, before you’ve notified the seller that you’ve accepted an offer on your existing home, you will receive notice from the seller, and you’ll have (typically) one day to choose between one of three options:
- - You’ve accepted an offer on your home, thereby removing your contingency;
  - You have not yet accepted an offer, but you will remove the contingency of your home sale and agree to move forward with the transaction and pay for the balance of the home with other verifiable funds; or,
  - Terminate the transaction and receive a refund on your earnest money deposit.

Here are a list of things to think about and discuss before choosing a contingent offer approach:

If you’ll be living at your home while it’s on the market, you will need to keep your house in a ready-to-show state, with showings occurring with little notice, likely for a solid 3-4 weeks. Think about what this will mean for your daily life, and whether and how you can adjust to make this possible.
Ask your broker’s opinion on days on market for your house, and how this will help/hurt your chances of a contingent offer being accepted.
Consider the crucial importance of pricing competitively. When you have limited time to accept an offer on your home so you can buy your next home, this is not the time to set an unreasonable, unsupported or stretch listing price. The hope with a competitively-priced home in a competitive market is that you will receive multiple offers and you can ultimately get more for your house than you listed it for. In fact, we experienced this very thing: Peter and Erin received an offer over their original listing price, despite making a $10,000 price reduction after two weeks on the market.

In the end, everything came together very smoothly. It was the result of a great strategy, excellent planning, teamwork and communication, a deep reservoir of patience and fortitude by Peter and Erin, and skillful, quality agents on the other sides of both transactions.

Now, finally, Peter and Erin get to welcome a new decade with their two young boys and their beloved dog, in a new home that meets or exceeds all of their needs. It was well worth the wait, and their joy is my joy – a huge reason why I do this work.

If a contingent offer makes sense for your situation, I’m happy to discuss more details with you and to help form a strategy for your success!

Header Photo and Credit: Natalia Y on Unsplash

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ANDY MEEKS
Living Room Realty

Licensed Oregon Broker | Earth Advantage REALTOR®
andy@livingroomre.com | 971.400.0195 | PDX

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The McDonald Mission

Posted on June 12, 2019 by Living Room Realty

The McDonalds are my mission in real estate – they are why I love my job! I met Earl a few years back when they were looking for an investment property. I helped them get a house with a detached ADU on it that had great long term renters. Fast forward to March of this year when they shared with me that their family grew from 5 people to 6 people, and they were looking for a new place to call home. Their current home was lovely, but it was time for them to find a little more space with some upgraded amenities. We looked at a few homes that were so-so, but then we saw Plover. It was really beautiful. It backs up to a public park with tons of greenspace, gardens, soccer fields and playgrounds… a perfect location for a family with 4 kids. I distinctly remember Earl and Brianna saying “I don’t even know if we deserve this nice of a house?” Right then and there, it became my mission to get them into it and change their mind. Plover had been on the market for about a month, so we excitedly thought there was a chance that our contingent offer might get accepted… but then a non-contingent competing offer came in… ours was put into back-up. We picked up our bootstraps and moved on.

Going through the offer experience cemented for Earl and Brianna that they definitely wanted to sell their home and buy up. So we started to get their home ready. Earl and Brianna were machines! They did such an amazing job getting their home ready – it was an all out family effort and it was spectacular. We hadn’t been seeing any good homes come on the market, however, and it was a little scary taking such a leap to sell without knowing what options would come up. A few days before their home was about to hit the market, we got a call from the Plover agent. We got a second chance!! The first buyers got cold feet, even after an incredible inspection on the home… it was meant to be Earl and Brianna’s, we were certain!

Two weeks into Earl and Brianna’s home being on the market with great activity but no offers, we got a little nervous. We only had a total of 3 weeks to have an accepted offer on their home before we’d be moved to a bumpable status and the listing agent could solicit offers again on Plover! Long story short, we received multiple offers on their home, had to go to their back-up offer, which was also contingent, and the dream of Plover seemed farther and farther. The buyers of Earl and Brianna’s home had an adorable condo in South Tabor, but it wasn’t getting offers either! Days before we were about to throw in the towel on the whole deal, the buyers got an offer on their condo and the buyers of the condo showed some serious commitment. With a lot of flexibility on the listing agent’s side of Plover and a lot of dedication on the buyers agent side of Earl and Brianna’s house, we made it happen. It was a game of Dominoes, but my very special clients sold their house one day and bought a house the next day.

I couldn’t be happier for this incredible family and their tenacity to get what they deserve, all the while leaving it up to the universe for whatever was meant to be. We went through a journey together and are forever connected. Thank you for representing my mission and trusting me to represent you in this complicated process. All my love, gratitude, and congratulations, McDonalds!

Want to Buy a House, But Need to Sell One First?

Posted on February 5, 2019February 6, 2019 by Erika George & Kari McGee

After four long years, the Portland real estate market is now right for those homeowners who want to buy a house, but need to sell their current home as well. In real estate lingo, they’re called “contingent buyers.” If you’re considering how to sell and buy a house, we’ve outlined four options to help you make the move. We’ve helped many Portlanders sell their current home and move into their dream house.

Why is 2019 a great time for contingent buyers? The Portland real estate market has changed, and we’ve entered a balanced market for the first time in four years. That means buyers have more leverage, including contingent buyers. (We do a deep dive into 2019 buyer trends in our post Is 2019 The Right Time to Buy a House?)

Before we outline your four options, remember that the HouseLovePDX Team provides free consultations and market analysis. Don’t hesitate to give us a call and arrange a time to go over your options in person or over the phone!

Option 1: Shop – Buy – Sell

This is a classic contingent offer:

Shop for your new dream home
Make a “contingent offer” to the seller – the offer is contingent on the sale of your current house
Seller accepts the offer
Sell your current house
Move into your new home

Sellers may be wary of contingent offers because there is more risk compared to a traditional offer. (If for whatever reason you don’t sell your current house, then the deal is off.) Some sellers won’t accept a contingent offer. In the past, sellers had more leverage than buyers in the Portland real estate market, and they tended to reject contingent offers. Happily that’s not the case in the current market.

When you’ve made a contingent offer, it’s crucial to sell your house as soon as possible. You don’t want to be sitting on the market for two or three months. Preparing ahead to sell your house will make your contingent offer as appealing as possible to sellers.

How to Prepare Ahead for a Contingent Offer

Preparing ahead for a contingent offer is similar to preparing to sell your house in general.

Free Consultation and Market Analysis

We provide a free consultation, including a professional marketing analysis of your current property. We’ll establish your house’s price point, and how much you can expect to get in terms of your net proceeds. This will give you a price range when you’re house hunting for a new home.

Recommended home improvement projects

We’ll provide a list of prioritized home improvement projects to help increase the value of your home. Not everyone can – or wants to – invest in home improvement projects. That’s not a problem! What’s important is pricing your house right to sell it after you make a contingent offer on a new home.

Create Marketing Plan and Stage Photography

We will create a marketing plan and stage photography that will show your house in the best light.

When you find your new dream home and make a contingent offer, we show the seller your marketing strategy, pricing strategy and beautiful photos. This assures the seller we’re ready to sell you house, and can provide the confidence needed for a seller to accept your contingent offer.

As soon as the seller accepts your offer, we’re ready to get your house on the market within 24 to 48 hours!

Option 2: Sell – Shop – Buy (Or Plan B)

We call this the “Plan B Option” because you must have a plan B arranged in case you don’t sell your house in time:

Sell your house
Shop for your new home
Either buy your new home or move temporarily into your plan B option

Plan B can be an apartment, or living with your parents or in-laws.

You’re already under contract to sell your current house, so you’re in a great position when shopping for your dream home. However, it’s important to do some research and make sure there is enough real estate inventory to choose from, i.e. other houses for sale within your price range and with the characteristics you’re looking for. You will need to shop for a new home relatively quickly.

The risk in this situation is that if you haven’t closed on your new house in time, you have to move into your plan B temporary housing.

Although it’s crucial to have a doable plan B arranged, so far we’ve always managed to get our clients into new homes before they’ve had to move to their plan B. (Moving back in with your parents seems to be a very motivating factor!)

Option 3: Bridge Loan

A bridge loan provides financing for a downpayment on a new house. That means you don’t need to sell your current home in order to purchase a new one. Like all loans, bridge loans are based on several factors, including your income and credit, and loan-to-value ratio. We can put you in touch with excellent loan officers who can provide detailed information on your unique circumstances. (Erika used a bridge loan to buy her last house, so she can speak from personal experience as well.)

If you qualify for a bridge loan you can:

Shop for your new dream home
Make an offer on a new house, financed with the bridge loan
Move into your new house
Prepare your old house for sale
Sell your old house

The major benefit of this option is you can wait to sell your house until after you’ve moved out. You don’t need to worry about moving into temporary housing and then moving again. If moving twice is something you want to avoid (think: children, pets, home businesses, lots and lots of packing) then a bridge loan may be a great option for you.

However, from a financial point of view, you will need to be able to pay two mortgages until your sell your old house. Not everyone has to make double mortgage payments, but you need to be able to afford it for the time it takes to sell your old house. Additionally, the selling price of your old house isn’t set in stone, so there’s some financial uncertainty.

In a best case scenario, you sell your current house quickly and avoid paying double mortgage. On the other hand, you may not be able to sell your house for six months, ten months or more, depending on the market. In our free consultation and market analysis, we talk to prospective clients about what they can realistically expect. If you are considering a bridge loan, you want to be confident that your property will sell quickly.

We understand that no one wants to pay two mortgages, so we will work with you to get your house sold quickly.

Option 4: Sell – Rent – Buy

This is a great option for people who want total financial security and don’t mind moving twice. If you want to make sure you have the money in the bank from your house sale, and you want plenty of time to shop around for your dream home, then this is a great option for you.

This option is straightforward:

Sell your current house
Move into temporary housing
Shop for your new dream home
Buy your new house

Kari went this route when she made her last move. This option gave her time to shop for the right house. There was no rush to buy a new house quickly.

There are pros and cons to each of these options. We’re happy to discuss your specific circumstances in detail. There’s no reason to wait – it’s time to move into the right house for you and your family! Call us for a free consultation at 971-322-6612 or email us at karianderika@livingroomre.com.

NICE AND SLOW WITH ROOM TO GROW

Posted on December 18, 2018 by Living Room Realty

Expecting their fourth boy. J&B were feeling the constraints of their first home. They had found a listing for the perfect little slice of rural life just outside the city and gave me a call. The property was a rural farm house in Canby, OR. With over 3,000 square feet and just over an acre of land. The photos online featured a river running through the backyard, one of the biggest Oak trees I have ever seen, and the cutest little pump house covered with ivy.

It was a chilly January afternoon when we decided to check it out. As we pulled up, the sun broke through the clouds. It didn’t take long to realize that this home was perfect for them. Soon after, I went to work developing a game plan
to rush their current house to market. Then we wrote an offer! This gem of a property had been listed for sale by owner for over a year. Imagine our surprise when another offer came in the same day as ours… and it was accepted!

We were all a bit devastated. It had been so easy envisioning them making that property their home. I knew how much they wanted that house. We had laid down all of their cards with the offer. The offer was well below asking and at the top of their budget. The house had sat for so long though. So back to the drawing board we went. It was pretty clear from the get go though, that they just weren’t ready to move on. J&B were not going to just get over “the one that got away”. So, with the impending birth of a new baby, J&B decided that moving just wasn’t meant to be. They decided to stay put for the time being.

Fast forward two months later and two weeks from baby 4’s arrival…. I got a call from the owner of their dream property. Rising interest rates had caused the accepted offer to fall out of contract. The house was going back on the market. The owner wanted to know if my clients were still interested? I immediately called J&B and told them I needed to talk to them in person. They had no idea what I was about to tell them (see the reaction photo above). They were beyond excited and we resubmitted!

Being a rural property. The inspections are a little more nuanced than they tend to be in city limits. We asked for one month to list and sell their old home. We then asked for a 20 business day inspection period rather than the usual 10. The rural property was located on a flood zone. It also had a well and septic tank that we needed to understand.

With baby T due in just two weeks, we went to work preparing their house for sale. Walls and cabinets were painted. Staging was brought in and some landscaping was done to ensure that the house would sell promptly. All the efforts paid off! The house went pending! We then wrapped up the purchase of their dream home!

Fast forward 5 months. This family is now settled into the rural life! They have spent the summer swimming, catching snakes, making new friends, and enjoying river view sunsets. This purchase certainly wasn’t a short one, but it was well worth it to see this family living their dream! Just as they had envisioned on that cold January afternoon.

The C-Word (in Real Estate)

Posted on December 18, 2018December 19, 2018 by Bobby Curtis

The C-word is showing up in more real estate conversations lately. Well actually a few c-words: Cooling. Creative. CONTINGENT.

Yes, the hot seller’s market is now cooler. Higher interest rates and feelings of market uncertainty have contributed to a slower real estate market, and it’s time to adjust expectations. Buyers have the luxury of getting a little more creative with their offers, like including contingencies, and sellers may find themselves needing to be just as creative when marketing their properties. Let’s look at this from a couple of perspectives.

Sellers: Time to start getting creative. We’re moving into a more balanced market. There are more houses for sale, which means buyers have more choices and they feel they have more time to find the perfect match. The days of selling your house for cash in 24 hours with 10 offers are gone for now.

Make sure you’re working with an experienced agent who knows your neighborhood, and can offer an educated perspetive on what to expect in the coming months. This will help appropriately price and market your house, and it will sell more quickly. If you get one, consider looking at those contingent offers. Keep in mind many of those buyers are also motivated sellers themselves. Have your agent find out if the buyers want to buy your house as much as you want to sell it, first. If you go this route, have some patience. To get the highest price and best terms in this scenario, you’ll likely need to wait it out a couple of months for them to sell their house first.

Buyers: You can get creative too! Need to sell your house before buying? Include that contingency in your offer or ask for an extended close period. Even ask for what you want, what you really, really want. Maybe after seeing many houses you’ve found your 95% dream home. Consider asking the seller to make some concessions so you can afford to make those improvements right away, or even ask if they’ll make those improvements before it closes. It can’t hurt to ask, especially if your offer is the only one on the table.

This scenario played out on a house I sold last week. The buyers found their almost perfect home that these sellers had just remodeled. But, it was missing a few things (or rooms) to work well for their family. What sealed the deal? The extra bathroom and finished living space the buyers asked to be constructed in the the basement prior to close. Not only did the sellers come through on their wish list, this sale was contingent on the buyers house selling, too. Are you still following? So why would these sellers do that? First, they remodel houses for a living so it was in their wheelhouse. Second, the buyers were willing to hand their earnest money over to the sellers before closing so they could make these personalized updates for them. Cool clients, contingent closings, creative considerations. All c-words on this one.

The market is changing. If you’re actively in it, you know that. Selling right now? Work with your agent to ensure you’re competitive and make sure they’re working creatively to get your house sold. If you’re buying, don’t pass up that 95% dream home. Just ask for what you want. The sellers will be glad you put a thoughtful offer together.