APR in the News Buyer / Seller Information

How can contingencies either help or harm a sale?

November 17, 2014
Agents Sound Off
 

Clayton Humphries
San Francisco
415.814.8248
claytonh@apr.com

Question: How can contingencies either help or harm a sale?
Answer: I was once asked to list a client’s townhome for sale, and we laid out a timeline and marketing plan. After our first open house, my clients found their dream home — a beautiful four-bedroom with an amazing yard and garden. After we toured the home together, we put in an offer. We included that the offer was contingent on the sale of the townhome.
This is a tricky situation for an agent. Why would the seller accept our offer when we still had to find a buyer? The key is communication. Although many agents may advise their seller to consider another offer, this agent worked with us.
While the contingency hurt our chances initially, in the long run it helped. In our notes we stated the sale of the townhome would be within 30 days. We gave the seller a Comparative Market Analysis of the townhome and included a bio of my client’s family, discussing their commitment to the community and their desire to continue to grow their family in this home.
In the end, the seller shared with us that because we had the townhouse well marketed and priced correctly, it proved that once we were in contract, we would be more than qualified.
While contingencies can in some cases slow the closing process, if your agent communicates with the seller that you have a valuable property you’re leveraging, it can help in showing your commitment to purchasing their home.
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