Imagine this: It’s been a few weeks since you first put out an advertisement in your house. You’ve already entertained so many potential buyers; however, no one has yet signified an interest to buy your home.
Then, just when you least expect it, you receive word from an agent that their client likes your home and is planning to buy it. Unfortunately, there is a catch: apparently, this buyer is part of a chain, and before he can place a deposit on your home, he has to sell his own property first. If you’re faced with a situation such as this, what would you do?
There are several courses of action you, as a home seller, can take. But, to protect your interest, it would be wise to quietly instruct the buyer that you cannot put a hold on your property until he has sold his house. Encourage him, however, that if your home is still on the market by the time his unit has been sold, nothing would prevent you from doing business with him.
Many buyers would be eager to offer you with contingent offers but it may be a drawback you. Once you accept a contingent offer, you will have to advise your agent (or the real estate agents of other buyers) about this.
Buyers or agents who are aware that someone else has “laid claim” to the property may have second thoughts about even considering your home. You may not get back up offers from other potential buyers as they will think that your home has already been “reserved”.
In addition, buyers who can manage to pay to purchase a home outright would not want to wait till the 1st buyer defaults on the contingent offer. They would rather spend the time wasted waiting for the answer, looking for other available homes.
In any case, if you decide to accept the contingent offer, do not take your house off the market. Remember that you are unsure of the buyer’s capability to make good on his promise. You just have to inform your potential buyers of your outstanding agreement. If the buyer you are talking to is serious about purchasing your home, this pending contract will not deter him from making an offer.