Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners)

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Rainmaker
1,723,705
Lyn Sims
Schaumburg, IL
Schaumburg Real Estate Agent Retired

I do not recommend this at all. Too many negatives for seller. In our market we have not accepted contingencies on house to sell for years & years.

Just like pre-qualified buyers, went the way of the dodo bird.

Jun 01, 2018 04:39 AM
Rainmaker
4,048,656
Richard Weeks
Dallas, TX
REALTOR®, Broker

Before I made my recommendation to my client about accepting the offer with a contingency I would talk to the other agent and get more information about the buyers contract on the sale of their current home.  I would check out their house in mls, and would need to know the major terms and conditions.  I would then talk to the buyers agent who is purchasing the house and find out their thoughts about their transaction closing and funding.

Jun 01, 2018 05:55 AM
Ambassador
4,260,089
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

That is a rare occurance these days but, in the past, a hefty, non-refundable deposit would be required and I also do a CMA on the buyers' current home and the marketing being done for it.

It's not 'making sure' - minimal risk is the best you can do with a contingency, Praful.

Jun 01, 2018 06:01 AM
Rainmaker
4,123,450
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

You cannot eliminate risk in this regard, you can only mitigate. You can get some non-refundable money; you need to know everything you can about the buyer's current home listing situation... if they are in a neighborhood where everything sells in a week or less... there is less risk than where things take months to sell.

Jun 01, 2018 05:07 AM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

You can't ever be 100% sure but I normally like it when they get past inspections.

Jun 01, 2018 04:44 AM
Rainmaker
895,805
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

This is just not rocket science.
Our contingency agreements have a set amount of time, usually 30 days, during which buyer can tie up the property.
If their house is already in escrow, and the inspection period is less than that, then it's no more dramatic than waiting for loan approval. Contract allows us to communicate with the buyers escrow to stay informed as to the status of their sale.
Having said that, if the buyers house is not sold or God forbid not on the market, and it's not in an extremely fast-moving area if it is listed, then we simply wouldn't accept the deal.
Is there risk? Of course there's risk, there's risk with every transaction. it's real estate.
Legalized gambling.
Roll the bones!

Jun 01, 2018 02:26 PM
Ambassador
5,415,573
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671
  1. Bump Clause
  2. Research the other sale, and the buyers associated with it.
Jun 01, 2018 10:13 AM
Ambassador
2,571,547
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   I cannot advise you to accept this offer.  Your house will show contingent in MLS, which means that agents won't show it.  If the buyer's house never sells, you have lost all that time.

Jun 01, 2018 07:11 AM
Rainmaker
4,216,016
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Ken Jones Real Estate Advisor summed it up well and in short form!

Jun 01, 2018 05:49 AM
Rainmaker
577,189
Gloria Valvasori, Accredited Senior Agent
BETTER HOMES AND GARDENS REAL ESTATE SIGNATURE SERVICE - Mississauga, ON
REAL Experience | REAL Commitment | REAL Results!

It is very rare here that an offer like that would ever be accepted. Hasn't been a normal practice for many years.  

Jun 01, 2018 05:39 AM
Rainmaker
684,915
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

There's always risk when you accept a Hubbard Clause but there's risk in any buyer & some homes are most likely to sell to someone with something to sell so how do you mitigate that risk? Ask the buyer's Agent if they are on the market? under deposit? how far along they are into their deal? What are the timelines on their deal? what are the contingencies of their deal? On their offer make sure there is a specified date you must close by otherwise the deal is off...

Jun 01, 2018 05:38 AM
Rainmaker
3,331,953
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I make sure the home is under contract, i ask for the contract and info on both the inspections and the buyer for their homes mortgage

Jun 01, 2018 05:20 AM
Rainmaker
6,614,429
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

You need to provide the wording in the contract.

Jun 01, 2018 04:40 AM
Rainmaker
557,068
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

If the buyer's home is already in contract, then the issue is not as great as when they have not yet got a deal on their home. In Oregon we have a form called a "contigent right to purchase" which dictates timelines for when the buyer's home needs to be in contract plus if acccepted, the seller's home is in bumpable status and others can offer and bump the primary buyer if they are not in a place to remove their contingency.

Jun 01, 2018 12:42 PM
Ambassador
3,058,507
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Advise. Guide. Recommend.  Give the seller the information they need to make an informed decision.  Beyond that, there are no guarantees. 

Jun 01, 2018 09:06 AM
Rainmaker
187,033
Erika Rae Albert, Austin Real Estate Expert
E*Rae Realty - Austin, TX
Exceeding Expectations in Every Transaction

Many others have provided solid answers...one thing I do that has not been mentioned here is personally look at the home they are trying to sell.  

Jun 01, 2018 07:14 AM
Rainmaker
5,592,912
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Praful,

I agree with Lyn Sims 

Jun 01, 2018 06:16 AM
Rainmaker
3,069,984
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Ken Jones Real Estate Advisor nailed this one!

Jun 01, 2018 05:46 AM
Rainer
44,741
Dan Capra
LAER Realty Partners - Lowell, MA
Listing/Buyer Agent

put in a kick out clause if the buyers home is not already under agreement with a strong buyer

Jun 01, 2018 05:25 AM
Rainmaker
3,719,739
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

We NEVER accept these offers...

Jun 01, 2018 04:55 AM
Rainmaker
889,337
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The contractual laws of the State of Florida do not allow agents to remove risk from a seller accepting ANY offer which includes contingent offers. 

The magical words are 'Buyer can terminate at buyers sole discretion."

Guarantees to the seller are not available. However, an agent can try to compensate the seller for their pain with $$$$ from the potential buyer.

Jun 01, 2018 04:33 AM
Rainmaker
1,387,948
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

In California there is no protection for the seller.  You are not allowed to have the home listed as "Active", even if the offer is contingent on a home selling that isn't even listed yet!  No one will show an "active under contract" listing.  Long gone is our status of "Contingent" or "CYB" which would have given protection to the seller.

Jun 01, 2018 10:34 AM
Rainmaker
5,571,934
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

that's a contingency that would never happen in this sellers' market.... that's a buyer's market contingency.... when there are tons of listings and buyers call the shots.... 

at that point, there needs to be a 30 day contingency to sell and then all bets are off....that's how we did them.... 

Jun 01, 2018 09:57 AM
Rainmaker
710,004
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

Too long to explain here. There are many ways. It's the subject-matter of a webinar.

Jun 01, 2018 07:35 AM
Rainmaker
4,103,751
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

I ask questions in order to minimize risk. This is real estate (and real life) things can and do happen. 

Jun 01, 2018 07:28 AM
Rainmaker
2,642,412
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This just means there is more to vett & investigate....

Jun 01, 2018 06:50 AM
Rainmaker
4,433,703
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I discourage such offers unless the house is already under conrtact

Jun 01, 2018 06:48 AM
Rainmaker
822,262
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

I don't accept those offers.

Jun 01, 2018 06:03 AM
Rainmaker
4,799,501
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I do it by stipulating that the listing stays active in the MLS and that these buyers have a 24-hour kick out clause.

Jun 01, 2018 05:54 AM
Rainmaker
4,945,390
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

In our brisk Seller's market, I always recommend the buyers at least obtain an offer prior to writing.   My sellers won't take them.

Jun 05, 2018 07:27 AM
Rainmaker
911,686
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Perfect protection for the seller is not available. Attempts to minimize risk for the seller include “bump” clause, limited time periods for the contingency to be removed, due diligence regarding agent’s investigation of the buyer’s sale.

In our current market, more common is a contingency on the part of the seller re: finding a replacement property. In a multiple offer environment, offers to purchase contingent on selling a house are not favored.

Jun 03, 2018 08:10 AM
Rainmaker
3,985,875
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

A solid cash deal still ahs a few risks involved.

Jun 01, 2018 09:08 PM
Ambassador
3,039,280
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I advise and mostly sellers only accept with a kick out

Jun 01, 2018 06:52 PM
Rainer
1,115
Meg Dumont
Keller Williams Metropolitan - Bedford, NH
Buyers Agent

If I had a seller wanting to accept and offer contingent upon a buyer selling thier current home then I would put a dead line on the contingency. 

"Buyer has 2 weeks from acceptance date of this contract to provide written evidence of thier home located at 123 Main street being under agreement."

Jun 01, 2018 01:49 PM
Rainmaker
645,998
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Santa Clarita & Aliso Viejo

Time periods are the key and continuing to market the home for backup offers is essential as well.  It starts with making sure the buyer's home is listed, priced right and being in escrow would be preferred.  I would give them a time limit to have all contingencies on both home removed.  There is never a guarantee is sales just doing our best to protect the best interest of our clients.

Jun 01, 2018 11:28 AM