Saturday, March 2, 2019 / by Matt Bergman
This is part two of this blog so go back and look at part one for other important things a seller needs to pay attention to in the offers that they get.
Buyers Sale of Home Contingency:
This Contingency is pretty straight forward, the buyer will still be in the contract as long as they sell their house in a certain time frame. If they can't sell their house then the contract becomes void, the sellers house will go back on the market and the buyer will get all of their earnest money back. So depending on the market that the seller is selling will really determine if this is a contingency that they want to get in with. If its a sellers market the seller usually will have more options that they can pick from.
If the seller decides to take the offer with the buyers sale of home contingency they should really consider countering with a Bump Clause.
The bump clause is a great way to protect the seller in this situation. The bump clause will allow the seller to continue to market their home and let other potential buyers come and take a look at it and make offers if they want. If the Seller gets a offer they want to accept then they initiate the bump clause for the first buyer. This gives the first buyer 5 days to either find a way to get the money to fulfill the contract or they have to forfeit the contract and let the new buyers contract take over. The two contracts are completely different from one another but its a way for the seller to take an offer that they like while still giving them options to make sure their house sells.
This is another thing for the seller to pay close attention to. Typically the seller will pay both sides of the closing cost. But again, depending on the market that the seller is selling in they might not be willing to pay the closing cost. When a buyer ask for the seller to pay for the closing a rough estimate of how much that would cost would be about 3% of the purchase price. So if a seller sees a contract that has a full priced offer but the seller pay closing cost, it really isn't a full priced offer because they have to pay closing cost and they wont net as much money as they were hoping to get.
Every contract is different and comes with its unique challenges, but its critical for the seller to pay attention to whats in the contract. The highest purchase price isn't always the best offer you will get, its the one that has the most things in it that you like and is likely to close. So to sell your house for the most pay attention to whats in the contract.