A Contingent Home Sale is when a homeowner is selling their current home with a contingency of finding and closing escrow on a new home at the same time; they are selling in order to buy. The contingency protects the seller and allows them to keep their home in the event that their home is in escrow, but are unable to find a suitable replacement property.
When the time comes to make the move, most homeowners need to sell their current home in order to purchase the new one. If proper care is not taken when listing the property, the seller could end up closing escrow on their current home before locating their next home, potentially leaving them homeless!
In order to avoid this, we include a contingency in the listing for the seller to find a home, thereby making it a contingent sale. Contingent sales can be a bit difficult to close.
Contingent home sales can be very stressful for the timing factor. Finding the right buyer for your current home AND the perfect new home within a 2 – 3 week period can be very difficult if proper care is not taken.
These transactions can be like stacking dominoes: if one piece falls, it can all come down. One of the reasons contingent home sales can be difficult is that both escrows must successfully close for you to move. If one escrow fails, the second is likely to fall apart as well.
Another reason why these transactions can be difficult is that, at one point or another, one party is going to have to take a leap of faith and commit to the purchase/sale, and sometimes they don’t jump. These leaps of faith are usually the removal of all contingencies and fully committing to the transaction.
Sometimes a buyer can be reluctant to release their contingencies if they know a seller has the ability to change their mind and decide to not sell after all. Other times the seller on the new home could be pressuring you as the buyer to remove all contingencies when the buyer on your current home is not done with investigations.
Your personal experience will depend on two main factors: the market and the agent you choose to work with. Learn more about contingent sales in our post, Buying and Selling at the Same Time.
The San Pedro housing market for April 2023 saw a decrease in the average sale price for homes, with inventory and interest rates falling slightly.
The Rancho Palos Verdes real estate market for April 2023 continues to experience an increase in the average sale price of homes, indicating that inventory
Despite the higher interest rates buyers face in today’s market, home prices seem to be on the rise again because there simply are not enough
The Residential Purchase Agreement is 10 pages of terms and conditions that stipulate every aspect of the purchase, and we know exactly how to use them to your complete advantage!
As experienced Full-Service Realtors, we know how to leverage you buying and bargain power. Whether competing to get your offer accepted or negotiating repairs, our goal is to get you a great deal!
The added benefit of working with The Prestige Team is that one of our Real Estate Professionals is always available to help. No missed opportunities!
Need help with decluttering? Whether you need a few boxes and an extra set of hands, have a house full of items that need to go, we have the resources in place ready to assist with your needs!
Schedule Management is crucial if you have a time frame in mind for the sale of your home. Let us use our experience to ensure every aspect of preparing your home for the market stays on schedule!
The added benefit of working with The Prestige Team is that one of our Real Estate Professionals is always available to help. No missed opportunities!
The Prestige Team © All rights reserved - 2023 | Keller Williams - L.A. Harbor - DRE 01501084
