Will an offer contingent on the sale of the buyer’s home be accepted?

[george]

What’s happening these days with buyers who make purchase offers contingent upon selling their existing home? We’re looking at buying a place in North County in early 2010 in the $2-2.5M range. We would need to sell out current home in Nor Cal which is worth about $625K in today’s market (we bought in Q204 and will be taking a large loss) . The North County market is very slow in the price range we are looking at, so were hoping that sellers would more open to accepting this type of offer than they were when times were good. Is there a typical closing time period for this type of contingent purchase? Other than the home sale contingency, our offer would probably be considered quite strong, since we will be spending about 30% less than we are pre-approved for. At present we are using Redfin as our agent so we are not able to get much in the way of advice.

[patientrenter]

george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?

[patientrenter]

george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?

[patientrenter]

george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?

[patientrenter]

george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?

[patientrenter]

george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?

[george]

[quote=patientrenter]george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?[/quote]

Home purchase contracts are really quite simple and to a great extent standardized. I’ve worked with and developed contracts that are far more complicated and bought and sold a number of homes in the past. If I get involved in a weird deal I’ll consult an expert. I’ll probably shop for a regular agent as we get closer to our target date, but they will have to match the $37,500 kickback (25% commission on $2.5M) or be pretty damned impressive. On the selling side I am much more inclined to use an agent as they bring a lot more value to the table in terms of sales skills, contacts and protecting me from seller liabilities.

[george]

[quote=patientrenter]george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?[/quote]

Home purchase contracts are really quite simple and to a great extent standardized. I’ve worked with and developed contracts that are far more complicated and bought and sold a number of homes in the past. If I get involved in a weird deal I’ll consult an expert. I’ll probably shop for a regular agent as we get closer to our target date, but they will have to match the $37,500 kickback (25% commission on $2.5M) or be pretty damned impressive. On the selling side I am much more inclined to use an agent as they bring a lot more value to the table in terms of sales skills, contacts and protecting me from seller liabilities.

[george]

[quote=patientrenter]george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?[/quote]

Home purchase contracts are really quite simple and to a great extent standardized. I’ve worked with and developed contracts that are far more complicated and bought and sold a number of homes in the past. If I get involved in a weird deal I’ll consult an expert. I’ll probably shop for a regular agent as we get closer to our target date, but they will have to match the $37,500 kickback (25% commission on $2.5M) or be pretty damned impressive. On the selling side I am much more inclined to use an agent as they bring a lot more value to the table in terms of sales skills, contacts and protecting me from seller liabilities.

[george]

[quote=patientrenter]george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?[/quote]

Home purchase contracts are really quite simple and to a great extent standardized. I’ve worked with and developed contracts that are far more complicated and bought and sold a number of homes in the past. If I get involved in a weird deal I’ll consult an expert. I’ll probably shop for a regular agent as we get closer to our target date, but they will have to match the $37,500 kickback (25% commission on $2.5M) or be pretty damned impressive. On the selling side I am much more inclined to use an agent as they bring a lot more value to the table in terms of sales skills, contacts and protecting me from seller liabilities.

[george]

[quote=patientrenter]george, I hope you get some good advice here from the experts. But you are planning to spend at least $2 million on one item, and you don’t want to engage a professional for a fee to help you make the best decision? Penny-wise, pound-foolish, perhaps?[/quote]

Home purchase contracts are really quite simple and to a great extent standardized. I’ve worked with and developed contracts that are far more complicated and bought and sold a number of homes in the past. If I get involved in a weird deal I’ll consult an expert. I’ll probably shop for a regular agent as we get closer to our target date, but they will have to match the $37,500 kickback (25% commission on $2.5M) or be pretty damned impressive. On the selling side I am much more inclined to use an agent as they bring a lot more value to the table in terms of sales skills, contacts and protecting me from seller liabilities.

[JustLurking]

I suppose it depends on how desparate the seller is, and how much you are willing to overpay for the house. I think it is unrealistic to expect someone to accept a “low” offer with a home sale contingency. Sellers in that price range will consider any realistic offer a low offer. Homes in that price range are seriously levitating right now. That could change in the next 6 months, but I think it will take longer than that.

[JustLurking]

I suppose it depends on how desparate the seller is, and how much you are willing to overpay for the house. I think it is unrealistic to expect someone to accept a “low” offer with a home sale contingency. Sellers in that price range will consider any realistic offer a low offer. Homes in that price range are seriously levitating right now. That could change in the next 6 months, but I think it will take longer than that.

[JustLurking]

I suppose it depends on how desparate the seller is, and how much you are willing to overpay for the house. I think it is unrealistic to expect someone to accept a “low” offer with a home sale contingency. Sellers in that price range will consider any realistic offer a low offer. Homes in that price range are seriously levitating right now. That could change in the next 6 months, but I think it will take longer than that.

[JustLurking]

I suppose it depends on how desparate the seller is, and how much you are willing to overpay for the house. I think it is unrealistic to expect someone to accept a “low” offer with a home sale contingency. Sellers in that price range will consider any realistic offer a low offer. Homes in that price range are seriously levitating right now. That could change in the next 6 months, but I think it will take longer than that.

[Author]

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