When to write a contingent offer in real estate
My client relocating from Houston to Tulsa told me that he did not need to write an offer on his Tulsa purchase contingent upon his home selling in Houston. His closing date on his Houston home was scheduled a few weeks prior to a possible close in Tulsa.
I asked him if he could proceed with a Tulsa purchase IF his home in Houston did not sell for some reason. Did he have accessible funds to purchase a 2nd home regardless if his Houston home sold?
Well, at first he looked at me like I was crazy, but admitted that he would NOT be able to proceed with a home purchase in Tulsa if his Houston sale fell through. What kind of predicament would he be in if the first domino did not fall?
“Then, you need to write an offer contingent upon the sale of your Houston home,” I replied.
A contingent offer is NOT a detriment if your home is already under contract. Yes, it slightly increases the unpredictability of the transaction, but it’s not the same as writing a contingent offer when your home is only listed for sale, but NOT under contract.
When you submit an offer contingent upon the successful sale of your home under contract, the Seller and Listing Realtor will want to see: (1) your executable contract; (2) that Buyer’s pre-qualification letter; and if available, (3) inspection reports and appraisal.
When to write a contingent offer in real estate
In this case, the inspections and appraisal had been completed, so no surprises there. Knowing that those two issues are out of the way will make them much more comfortable about accepting your contingent offer.
Everyone involved in a transaction deserves to know where everybody else is and what they’re dealing with. The quickest and surest route to a smooth transaction is 100% honesty and transparency when possible.
If you are relocating to Tulsa – whether selling a home elsewhere or not – I would love to welcome you to Tulsa and help you find the perfect home. Please call me to assist you! 918-852-5036
Content written and published by Lori Cain.
I agree, when your home is already under contract is the best (and maybe the only time) to write a contingency sale offer. I always direct clients who want to do it prior to that to wait a little longer because it is rare for a seller to accept it before that–I know I wouldn’t.