It’s a tough real estate market out there. First-time buyers are getting trampled by the competition and without solid offers, rock-solid financing, and some serious research, buyers are getting shoved to the wayside. A new contingency has emerged with many offers. This is a counteroffer stating that the seller will only accept an offer from a buyer if that seller can get an accepted offer on another house. This is alleviating a lot of the worry and stress that sellers are feeling right now in that if they sell they may not be able to buy. In such strict seller’s markets, a seller can easily sell their home but then finding another property has been the challenging part.
Many listing agents are actually putting into their listing descriptions and counteroffers a contingency stating that they will only accept an offer if their offer on another property is accepted and goes through. This is almost the reverse of a buyers market situation. A sold house contingency is typically presented by the seller stating that we can buy your house as long as our house sells. This is basically the reverse of that. We can only accept your offer if we can find another house.
This creates an interesting dynamic between buyers and sellers and the snowball effect can go on and on. Unless you’re dealing with someone that doesn’t have to buy or sell on the opposite end, a lot of people can only buy or sell if the same happens to them.
For instance, if a homeowner is listing their property but can only accept an offer if they find another house, then the house that they make an offer on may be contingent on their own house selling and so forth and so forth. The snowball continues to cycle and this can get extremely muddy, tricky, and tedious in the real estate business.
This is why I cannot stress enough how important it is to have your own representation when buying or selling property. While most homeowners are enlisting the help of a listing agent to sell their home, many buyers are trying to go at it alone and that’s just not smart buying. With so many different parties involved, so many different contingencies with different offers that may have nothing to do with your own, it only makes sense to have an agent that understands all of the processes and can help navigate through the tricky and sometimes muddy waters of all of these different purchase and sale contracts.
If you’re faced with the counteroffer that the seller will not sell their property to you unless they find another home, you might need a buyer’s agent to negotiate on your behalf. Contact our office at any time for more information on dealing with multiple contingencies in a buyer and seller situation. We would love to help you find, sell, or invest in a home in Portland or surrounding neighborhoods but it does help with the knowledge and experience of a qualified real estate brokerage.
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