Contingent Offer
Contingent Offer
I have my house listed for sale. My listing with my current agent expires in a month. I want to change agents when this happens.
I received an offer to buy (contingent on the buyer selling their house). If I accept this offer, am I stuck with this agent for the duration of the contingency (which is 90 days)?
The purchase offer does not say anything about me having continue with my present agent.
Thanks.
I received an offer to buy (contingent on the buyer selling their house). If I accept this offer, am I stuck with this agent for the duration of the contingency (which is 90 days)?
The purchase offer does not say anything about me having continue with my present agent.
Thanks.
- whatusername?
- Posts: 641
- Joined: Wed Feb 18, 2015 5:08 pm
Re: Contingent Offer
I would think it would come down to what your listing agreement says.
Regardless, I'd expect that you would owe agent #1 the commission if the contingent offer closes. If you engage another agent after the 30 days but before the contingent offer closes - if it doesn't fall through - you should make sure that you specifically except the contingent offer from your agreement with agent #2 so you don't accidentally end up owing two commissions. And then I'd run it by my lawyer just to make sure that's what the agreement actually said.
Regardless, I'd expect that you would owe agent #1 the commission if the contingent offer closes. If you engage another agent after the 30 days but before the contingent offer closes - if it doesn't fall through - you should make sure that you specifically except the contingent offer from your agreement with agent #2 so you don't accidentally end up owing two commissions. And then I'd run it by my lawyer just to make sure that's what the agreement actually said.
-
- Posts: 5761
- Joined: Mon Sep 22, 2014 4:47 pm
Re: Contingent Offer
Agent #1 brought you the willing buyer
Agent #1 gets the commission.
Agent #1 gets the commission.
Re: Contingent Offer
do you really want to accept the offer based on him selling his house? that is his problem, not yours.
Re: Contingent Offer
I am leaning towards NOT accepting the offer.cestan wrote:do you really want to accept the offer based on him selling his house? that is his problem, not yours.
- LiveSimple
- Posts: 2312
- Joined: Thu Jan 03, 2013 6:55 am
Re: Contingent Offer
Why agree to "contingent on the buyer selling their house" ?
Why no other offers are pending or coming ?
Why no other offers are pending or coming ?
Invest when you have the money, sell when you need the money, for real life expenses...
Re: Contingent Offer
This contingency is essentially a free option to buy your house for 90 days. If they decide to buy a different house, they can refuse every offer on their own. Just say no.
Re: Contingent Offer
I have NO problem paying Agent #1 the commission if I end up selling to this particular buyer.adamthesmythe wrote:Agent #1 brought you the willing buyer
Agent #1 gets the commission.
The contract with Agent #1 was until the middle of March. At his suggestion, we remodeled our kitchen. The house was taken off the market during that time. I never got any paperwork from him. The agent said something about holding an open house after the remodeling. I kept him continuously informed of how the remodeling went. During this period, I never heard from the agent for several days. (I learnt later that he was out of the country on vacation.) The contract was expiring taking into account the down time for remodeling. One day all of a sudden we saw an open house sign on our yard -- this was the only indication we got that there was going to be an open house. I emailed the agent pointing out that the contract was close to expiring. (Details and dates from memory. I have emails containing the exact dates.) I agreed to a one month extension. Fifteen days before the expiry of this extension period, he brought me the contingent offer. I have not signed this.
I definitely want a fresh start with another realtor with respect to other buyers. If the present buyer ends up buying, I have no problem paying a commission to Agent #1.
- ResearchMed
- Posts: 16768
- Joined: Fri Dec 26, 2008 10:25 pm
Re: Contingent Offer
Huh? You saw an Open House sign in your own yard, and your agent didn't check with you that you weren't having the bowling team and families sleep over then? Or in-laws showing up? Or that's the day one of you expected to come home after surgery?veeceeone wrote:I have NO problem paying Agent #1 the commission if I end up selling to this particular buyer.adamthesmythe wrote:Agent #1 brought you the willing buyer
Agent #1 gets the commission.
The contract with Agent #1 was until the middle of March. At his suggestion, we remodeled our kitchen. The house was taken off the market during that time. I never got any paperwork from him. The agent said something about holding an open house after the remodeling. I kept him continuously informed of how the remodeling went. During this period, I never heard from the agent for several days. (I learnt later that he was out of the country on vacation.) The contract was expiring taking into account the down time for remodeling. One day all of a sudden we saw an open house sign on our yard -- this was the only indication we got that there was going to be an open house. I emailed the agent pointing out that the contract was close to expiring. (Details and dates from memory. I have emails containing the exact dates.) I agreed to a one month extension. Fifteen days before the expiry of this extension period, he brought me the contingent offer. I have not signed this.
I definitely want a fresh start with another realtor with respect to other buyers. If the present buyer ends up buying, I have no problem paying a commission to Agent #1.
RM
This signature is a placebo. You are in the control group.
Re: Contingent Offer
With this agent, if there was surgery etc., I had to be proactive and inform him.Huh? You saw an Open House sign in your own yard, and your agent didn't check with you that that's the day one of you expected to come home after surgery?
There is a bit more info too. (I am sick of this whole thing.) I asked the agent for names of people who do tile work. He gave me a name. I liked his price and hired him. He did good work. It turned out that guy was the agent's son. From the son, I heard that his dad was out of the country. The son also told me that he has his dad's phone when the dad was out of the country. I kept on asking the son whether there was going to be an open house.
During the work week, I live 120 miles away from the house. One Tuesday my wife asked me on the phone whether there was going to be an Open House that Sunday. I told her "No" since I had not heard from either the father or the son [or the holy ghost, I need some humor] about an open house. My wife calls me back about the sign in our yard a few hours later.
Re: Contingent Offer
Is there such a thing as "48 hour right of first refusal" where you live? In that case the contingent buyer has the right to be first to buy the house, but you can continue to have it on the market and take other offers. If another offer comes I , the first buyer has 48 hours to prove they can close the deal or they lose the right and the new buyer can get it.
The buyer making the contingent offer may be able to buy a new home before the first home sells, but they are being financially cautious.
I would not take the house off the market to "hold it" for a contingent buyer.
Generally the listing agreement covers any offers made while listed and sometimes anyone who even saw the house while listed.
Sounds like the current realtor gets the deal if this offer goes through.
A contingent offer is better than none, but a cash buyer with a quick closing date is even better.
Lafder
The buyer making the contingent offer may be able to buy a new home before the first home sells, but they are being financially cautious.
I would not take the house off the market to "hold it" for a contingent buyer.
Generally the listing agreement covers any offers made while listed and sometimes anyone who even saw the house while listed.
Sounds like the current realtor gets the deal if this offer goes through.
A contingent offer is better than none, but a cash buyer with a quick closing date is even better.
Lafder
Re: Contingent Offer
Personally I would lower the asking price to get a solid non-contingent offer before I accepted a contingent offer. Too many things can go wrong.
Warning: I am about 80% satisficer (accepting of good enough) and 20% maximizer
Re: Contingent Offer
I would not take an offer contingent upon the sale of their home.
Allan
Allan
Re: Contingent Offer
Unless the real estate market is really slow in your area, a 90 day contingency would be a show-stopper for me, regardless of how I felt about the real estate agent.
Most of my posts assume no behavioral errors.