Contingency Offers: Get with the Program!

The need for sellers to accept contingency offers is quickly becoming a frustrating issue in the Triangle. Because sellers usually need to find a home to buy, and because of the growing shortage of houses for them TO buy, we’re facing a new, huge challenge. Buyers know how hard it is to find a home to buy in general, but SELLERS cannot compete with buyers who do not have a contingency, once their home is under contract. But think about this: If sellers know they have a double challenge (selling their home and finding one to move to) AND they know agents will not advocate for them in presenting (and getting accepted) contingency offers, then we can expect a big drop in listings. There you have it: My prediction. With the existing shortage of housing, if people stop listing, we’re in for a terrible situation. Agents need to become familiar with contingency offers and stop viewing them as bad. If a seller needs to make a contingency offer in order to have a shot at a place to move TO when they sell, then this puts the owner of the DESIRED home in an even stronger selling position. They can ask for full list price, high due diligence, and pretty much anything else they want, just for accepting a contingency offer. They might have to make one more house payment than planned, but they can also get that payment in due diligence if they play their cards right. Contingency offers are not the devil and they are growing…GROWING…in popularity and need. But both agents need to be able to have a frank discussion about the likelihood of two successful transactions and work towards facilitating a win-win situation. I remember writing blog entries, appealing to buyers to be sensible about their position of power during the market crash. So many buyers lost perspective and put sellers in heart wrenching positions because they had the upper hand. I hope our sellers now, when it’s their turn to hold all the cards, will keep their perspective as well. And agents, think about these contingency offers. They may work to your sellers’ advantage, if you negotiate well.