Tag: multiple offers

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

Posted on 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:

  1. 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.
  2. 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.

Just Sold – Hawthorne Haven

Posted on by David Columbus

Sold for $895,000 after just days on the market with multiple offers!

1411 SE 36th Avenue, Portland, OR 97214

This light-filled, private, comfortable home was designed by Architect Jeff Stern of IN SITU. Built to the highest of standards with passive house practices earning it a Home Energy Score of 10! Custom triple-pane windows & doors, garage, gallery entry, full-length glass opening to a courtyard, 2 primary bedroom suites, library/office, adorable 500 sq ft guest studio with kitchen, loft, & more. Nestled in the heart of the Hawthorne/Sunnyside neighborhood close to parks and all urban conveniences.

Banging Down The Door To Home Ownership

Posted on by Aryne + Dulcinea

Banging Down The Door To Home Ownership: How Buyers Are Winning Offers In Today’s Hot Market

We are seeing it all in this early 2021 Portland market.  While the following is not a recommendation on how to present an offer, and every listing is different from the last (different property, seller needs, and level of competition), we are seeing buyers give it their all.
Here’s what we see and hear buyers doing to beat out their competition:
  • Going high on price
  • Writing an appraisal bridge for price difference
  • Offering free rent-back up to 60 days
  • Providing a big earnest money deposit
  • Releasing earnest money either upon mutual acceptance or after the inspection contingency is waived
  • Taking the property in “as-is” condition, seller to do no repairs
  • Writing letters to the sellers
  • Offering to deal with any personal property the seller doesn’t want to take with them after closing

 

About Us:
Over the course of their professional partnership, Aryne + Dulcinea have helped over 200 clients prosper in their new lives. During this time, they have prided themselves in their top-notch selling abilities, with homes outperforming market standards, consistently exceeding list price while most of their listings sell in under 7 days. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching your real estate goals.

The Runner Up, Irvington

Posted on by Bobby Curtis

The One I Didn’t Get

In the summer of 2010, I had been working as an internal consultant for sales and marketing at a major pharmaceutical company. The next role for me within the company was to be a District Sales Manager. It had been a goal of mine for several years. I had taken on roles and jobs within that company over the course of five years in order to prepare myself for that sales manager job.

That summer I applied to five different sales manager positions within the company that would have moved me from the middle of the country back to one of many great cities on a coast, which I desperately wanted. Two of the positions, I was able to get a live interview for, which was a big deal. I thought one of my strengths was actually in face to face communication. It turns out, when you work for a great company in their sales and marketing department, there are many other people who share that same great strength. I did not get offered any of those positions that summer, although I heard I was the second choice for one of them. Which turns out, really doesn’t matter.

I was coming to the end of my 3 year assignment in the consultant role, and wasn’t willing to take on another role within the company. So I left. My #1 job didn’t pan out, so I went for my #2. I left the company, and the middle of the country, and started up my runner-up career. That was in real estate in Portland, Oregon.

The Runner Up House

Sometime getting your #1 house is a little like that. Your #1 doesn’t pan out, so you’re going for the runner up. That’s happening quite a bit right now. Many houses are getting multiple offers, and there’s only one person or family that’s getting that house. Often that means there are more disappointed than delighted buyers.

Or sometimes the #1 house isn’t what you thought it would be when you actually walk through it. There is only so much pictures, and even a video tour can convey. I have had several clients buy a property sight-unseen, and it’s worked out very well. In a competitive real estate market, sometimes that’s going to be the best option for getting a house that checks all of the boxes. And there are ways and strategies to mitigate that risk. But there is no replacing being inside the house and seeing it for yourself.

For my most recent out-of state buyers, their runner up house became their #1 house. Fortunately, on their trip to Portland to see the one they thought they wanted, we saw a couple others. This Irvington house was one of them, and is now the place they call home. Unsurprisingly, this house was the right choice for them, and I think this career was the right one for me too.

This restored beauty in Laurelhurst commanded multiple offers well over $1M. Check it out here.

The Portland Market can be Rollercoaster!

Posted on by Living Room Realty

As you may know, the market in Portland right now is absolutely bananas. In fact, The Oregonian just wrote an article titled: Portland is Sold Out of Homes! Needless-to-say when my clients approached me in July about finding them a first time home I knew it would be challenging but their journey was more like a rollercoaster ride!

We toured over 60 homes in total all the way from deep Overlook to Mt. Scott. After making a couple of offers that were rejected, success! We reached mutual acceptance on a home near Madison High School. Sadly, after the inspection there were some issues with the foundation that were too scary so they backed out. Then it happened again! We were lucky enough to have had an offer accepted again and this time the mold issues were out of control. So sadly, after six rejected offers, two sale fails, 70 toured homes and more than three months we were back at square one.

Back to the drawing board! We revised our search a little with a small increase in our budget and renewed energy in our step and we went back out there. This time, they at least knew what to ask for when it came to the inspection. 10-15 more home tours and we found this little gem in the perfect Woodstock neighborhood that they originally wanted to be in. They were head over heels! The wood burning fireplace to the fresh maple flooring to the wisteria dripping on the pergola… all with three bedrooms AND two bathrooms! It’s difficult to find any home with more than one bathroom in this price range and with the age of homes in the neighborhood. But this one had it! Everything they wanted.

I knew there would be multiple offers and I wanted to make sure this was the home they would be able to call their forever home. I went to work and drafted an offer presentation that guaranteed our offer would go to closing over all the other offers. All-in-all there were eight other offers and because of excellent communication between Jamis and me our offer won out over the others even though it wasn’t the highest offer!

Getting to work with our own Jamis Minnis at Living Room on the other side of this deal was an absolute dream! Jamis was so helpful and prompt with her responses and communication. Knowing how to write an impressive offer presentation also didn’t hurt…wink! Now my clients have a cozy home in which to build their lives together.

Congratulations to my friends Danielle and Tyler!

 

The Hot Spot

Posted on by Aryne + Dulcinea

Shopping for a home in the $350,000 – $500,000 range? Want cute and dialed in the inner city? You may have to fight for your right to…own a house. In the last 4 weeks, the competition in Portland has heated up. Many multiple offer situations are back, so before you write that offer, do as much research about the house as possible. Be thorough before writing an offer by looking at the property on portlandmaps.com, driving around to be sure you like the location, spending enough time in the home to know it will work for you.

 

 

About Us: Over the course of their professional partnership, Aryne + Dulcinea have helped over 200 clients prosper in their new lives. During this time, they have prided themselves in their top-notch selling abilities, with homes outperforming market standards, consistently exceeding list price while most of their listings sell in under 7 days. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching your real estate goals.

Contingent Offer in Lake Oswego

Posted on 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.

Contingent in Lake Oswego

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.

Buying a House on a Busy Street: A Secret Road to Homeownership

Posted on by Natalie Tracy

Okay, it’s not a secret road, it’s a busy road. But the secret is that you might get A LOT more house for your money by buying on a busy street.

Why? Because your feeling that a busy street lowers the value of a house is 100% accurate.

So, then, why would you want to buy one? Because it might just get you a house and neighborhood you may not otherwise be able to afford. But if it lowers the value of the house, doesn’t that make it a bad investment? Not necessarily. Here’s the trick – make sure what you pay for the house reflects the busy street, and make sure the busy street is not so undesirable that resale will be an uphill battle.

Case in point – I recently worked with a lovely first time buyer couple with very specific ideas of what they wanted in a house and neighborhood. The challenge was that their budget didn’t quite match what they wanted. The solution? We found a fantastic house in the neighborhood they wanted, on a slightly busy street.

Notice I said slightly busy. Not a major thoroughfare that makes it impossible to enjoy your home, or to pull out of your driveway safely. If we had taken this same house and plunked it a block or two into the neighborhood, it would easily have sold for $25,000 more. By being willing to compromise on the street, they got the house and neighborhood they really wanted. And as evidence that the street alone did not make the house undesirable, their adorable home received multiple offers. With expert market knowledge and negotiation skills, I was able to guide them toward a competitive winning offer. But even still, I ensured the busy street was part of the property valuation – after all, it will come into play again when they sell the house.

Just like so many other aspects of home buying, it comes down to priorities. What will make you the happiest with your home purchase? If, like so many home buyers, your budget doesn’t quite fit everything you want in your ideal home, what are your flex points? Is a slightly busy street a consideration? Or would you rather a home that needs some work, or a house a little farther out?

Finding an agent you trust to guide you through the home buying process is key – are you looking for the right fit for your home search? Drop me a text or email, and let’s grab coffee!

The Surgical Strike Lands a Unicorn

Posted on by Ella Gray

I met Rebecca last summer after the closing of “Tangerine Dream”, a house in Alberta Arts where I represented the buyer. She was impressed my buyer got the house “at list price” versus an amount her original agent had advised her. We set up a meeting to go over various strategies, philosophies, the changing market in general, and other details, and she decided to make a switch and work with me!

We started looking in earnest at homes in her criteria in the winter of 2018…very slim pickings coming on the market at that time (a historical norm). Once the new year hit, more inventory started coming on in her criteria – the quintessential “dialed-in” older home that had been remodeled and updated, but still retained the older charm and character, and in a walkable neighborhood. This criteria, PLUS a turnkey ADU or a rentable space in a popular price range put us in the “unicorn” territory. They are out there, highly desirable, hard to find, and when you do find one, everyone else wants it for a good deal too!

So we started off the new year in several multiple offer situations. We kept coming in at the right price, but there were terms that continued to “win” over the 5-8 other offers at each house. Terms that no agent normally recommends any buyer to use…folks were outright releasing appraisal contingencies, skipping inspections, lots of insanity to land the house (usually these buyers have lots of experience buying, and/or an endless amount of cash).

Finally a new listing came up that we both knew WAS.THE.ONE. A beautifully renovated Cape Cod with all kinds of modern updates, a mother-in-law suite with a separate entrance, in a walkable area, at a great price. THE UNICORN!  I was the very first agent to call about it, and we were one of the first groups to see it a few hours after it hit the market.

Rebecca and I knew the other buyers that were still out there that were waiving inspections, waiving appraisal contingency, etc. We sat down and she agreed to deploy the SURGICAL STRIKE of offers (and still kept all contingencies!). After going through a few rounds of previous offers, she trusted me and the process. We wrote the offer that same evening it hit the market and had it accepted within 12 hours before the first open house! Just in time too, as the listing received more offers throughout the weekend, but we were already in contract thanks to the Surgical Strike Strategy!

CONGRATULATIONS, Rebecca! I wish you many happy years here!

Multiple Offers: Arbor Lodge Bungalow

Posted on by Living Room Realty

6926 N Villard Avenue, Portland, OR 97217

OFFERED AT $375,000

SOLD FOR $408,000

2 BEDS | 2 BATHS | 1345 SF | 0.11 ACRE LOT

ML: #18684103 | TAXES:  $2,987

This sweet bungalow perfectly situated in the heart of Arbor Lodge went fast! 6 offers in two days, fast.

Over seventy-five people visited the open house and no wonder, the house is darling.

Original wood floors, newer roof and furnace, large backyard with room for a deck or raised beds. The home also has a wood burning fireplace and gas appliances.

The separate entrance basement with bathroom and egress window are perfect for an ADU or media room. Two bedrooms, one bath on main level. Quiet street, but walkable/bikeable neighborhood.

Reach out to see before and after photos!