Contingent offers have been popping up a lot in Boston real estate market, so I want to clear up a few myths and misconceptions about this type of offer if you’re a seller and you receive one.
What’s a contingent offer?
A contingent offer is usually one that is dependent on the sale of another home and can be a disadvantage because it involves something that’s out of your control. That offer, for example, could depend on a home that’s not even on the market yet, or one that’s located in a neighborhood that doesn’t support its price point.
However, they’re not always bad. Sometimes, they can even work to your advantage, although each situation is different.
If your contingent buyer has a Beacon Hill condo for sale that’s in the process of closing soon, you may have a better deal on your hands than you would if you accepted a non-contingent offer.
So if you’re considering a contingent offer, you need to inquire whether the home is on the market and what price point it’s at. You also need to know what type of property it is—is it the type of property that sells routinely or is it an over-priced condo for that downtown Boston neighborhood.
Next,take the time to understand the buyer and where they’re coming from, meaning what their local market looks like. We’re seeing a lot of contingent buyers selling in areas outside of downtown Boston and looking to move here.
Another advantage when selling to a contingent buyer is that once they sell their home, they have to follow through on purchasing yours. Otherwise, they’re homeless. Also, the buyer can’t bully you on inspection or repair items.
The bottom line is, don’t prejudge a deal until you’ve heard all the details, and make sure your agent knows which details to consider. If your contingent buyer has a home that’s in the process of closing, you may have a better deal on your hands than you would if you accepted a non-contingent offer because contingent buyers will oftentimes pay more.
As always, if you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you
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