This topic has been on my mind quite a bit lately because it’s something we are seeing more and more in our local market. Over the last couple of years when buyers were up against multiple offers in many cases, we rarely saw offers contingent on the sale of a home because if you wanted to win a bid, you’d remove AS MANY contingencies as possible.
It’s good to know a little bit about how this type of contingency works either as:
A) a Buyer with a home to sell or
B) a Seller who may be considering accepting an offer that is contingent on the Buyer’s home selling
- the document we use in Chattanooga for this is called “Buyer’s First Right of Refusal Addendum (Seller’s Right to Continue to Market Property)”
- this is the ONLY contingency in the Greater Chattanooga MLS that allows a home to stay in ACTIVE status while under contract
- home to “sell” contingency is satisfied and contingency can be removed when the buyer’s home goes under CONTRACT; it doesn’t have to actually close for the contingency to be removed
- the 48 hour time period comes into play when the seller comes to an agreement with another buyer (Buyer B) and then notifies the original buyer (Buyer A) that they now have 48 hours to remove their “home sale contingency” or Buyer A’s offer will be kicked out. You may have heard of a “kick-out clause”…this is an example of that.
More questions? Let’s chat!
