Steve Penner, REALTOR / Pro Ledger Online (owner) (Royal LePage / Pro Ledger Online Software)

Spam prevention
Rainmaker
938,355
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Contingency clause? Fairly common; everyone's coming from somewhere else (usually Califelony, LOL) and as long as the home is GONNA close (we can easily research the area and market there), it is probably OK.

Our document provisions a kickout clause with notice, allowing us to continue to receive offers and displace or compel the deal in place to remove all contingencies should something come along we want to work on.

The time frame is usually 30 days and can be extended with all parties' approval. 

Closed many a deal that way over the years! 
Having said ALLL that . . . it will rarely win over a clean and unencumbered deal.

Oct 29, 2019 05:23 AM
Rainmaker
4,244,779
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

It makes me think of "motivation".  So many different interpretations.  I guess it may depend on who is in the driver's  seat.

Oct 29, 2019 05:01 AM
Rainmaker
4,300,798
Richard Weeks
Dallas, TX
REALTOR®, Broker

They are used quite often in our market.  We use a seperate addendum on these type sales.

Oct 29, 2019 04:37 AM
Ambassador
4,721,790
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

We are seeing more of them these days. A year ago you never saw them. Common? No. And it varies from community to community when I look at MLS stats.

Oct 28, 2019 10:10 PM
Rainmaker
1,048,702
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I see it once in a while. If done is accompanied by a 48-hour kickout clause. I think Subject to the sale of offers are not taken as seriously as those that don't have the clause.

Oct 29, 2019 04:57 AM
Rainmaker
1,440,156
Raymond E. Camp
Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

The contingency happens here and just bumped one.

If the supply was better probably see more.

Oct 29, 2019 04:00 AM
Rainmaker
4,509,621
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Prudent sellers avoid these types of clauses. I am not a fan. If used the period of tiime is short. They usually turn out to be a swing and a miss.

Oct 29, 2019 03:58 AM
Rainmaker
3,622,507
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

About once a week, just out of our office

Oct 29, 2019 02:03 AM
Ambassador
5,698,644
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

I see fsbos accepting these often, those with agents seldom do.

Oct 28, 2019 09:41 PM
Ambassador
2,759,180
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

They can work if all are on board and everything moves forward rather smoothly. I have done plenty and the seller usually drives the transaction regarding terms, price and conditions.

Oct 29, 2019 05:42 AM
Rainmaker
868,138
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Rare, but occasionally they work out for both buyers and sellers.

Oct 29, 2019 04:46 AM
Rainmaker
4,433,184
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Not very... we have been in a seller's market for years... little reason for a seller to accept that kind of contingency. I don't recommend it to my sellers and discourage buyers.

Oct 29, 2019 05:03 AM
Rainmaker
914,708
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

The local real estate market is dominated by those who are purchasing their 4th, 5th even 6th home. They typically have sufficient equity, resources to avoid such situations. There are simply too many buying directly from their 401 to willing become non-competitive by creating this house of cards.

Yes, it happens, but not that often in the population with which I work.

Oct 29, 2019 03:56 AM
Rainmaker
962,696
Peter Mohylsky. BRIX REALTY
Brix Realty - Destin - Miramar Beach, FL
BRIX REALTY -DESTIN

Weak off but not often mentioned with investment properties.

Oct 29, 2019 03:44 AM
Rainer
227,567
Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

Might be a contingency. If the seller has no problem, neither have I. But...

Oct 29, 2019 03:43 AM
Rainmaker
1,667,326
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Very common for many

Oct 29, 2019 07:21 AM
Rainmaker
1,759,389
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

We do not accept them as sellers. I can't remember how many years it has been but it's a long time. When house sells, come on over.

Oct 29, 2019 05:42 AM
Rainmaker
704,532
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

I see it now & then. If they have a "hot" property they can get the right buyer who will wait. If not it's just another nail in the coffin. 

Oct 29, 2019 05:30 AM
Rainmaker
2,100,602
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Not that common 

Oct 29, 2019 07:21 PM
Rainmaker
2,066,074
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

In our area I don't remember when was last time.

Oct 29, 2019 07:08 PM
Ambassador
3,071,191
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Very rare. I’ll post a screen shot of this clause from my contract when I’m back in my office

Oct 29, 2019 11:33 AM
Rainmaker
5,767,371
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Steve,

I think this falls in the realm of "it depends" for me.  A

Oct 29, 2019 11:05 AM
Rainmaker
6,966,313
Roy Kelley
Retired - Gaithersburg, MD

They are no longer common in our very active market.

Oct 29, 2019 10:22 AM
Rainmaker
4,278,254
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Still see it and see lots of expires that have that .

 

Oct 29, 2019 09:52 AM
Rainmaker
1,135,646
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Not a fan Steve although they pop up now and then. The "For Sale" property must be in excellent condition and expect a kick-out clause. A necessary evil at times they can be negotiated to alleviate the aches & pains with understanding and willing principals. Often hand holding is part of the equation too. 

Oct 29, 2019 09:11 AM
Rainmaker
2,683,902
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Not common and I will emphasize that this has to be taken seriously to be effective. Just putting in there means nothing if one doesn't act on it aggressively. Selling to buy another home has to be verified & vetted to be real or everyone is spinning wheels

Oct 29, 2019 07:27 AM
Rainmaker
411,859
Dana Hollish Hill
Hollish Hill Group, JPAR Stellar Living - Bethesda, MD
REALTOR * Broker * Coach

Not common. When agents want to use them, there are lots of questions about how to use them properly.

I work in three states and the clauses are slightly different in each and some local areas have created an additional clause that says "contingent on the settlement of..." so that buyers who have their home Under Contract can a avoid the home sale contingency and use the slightly more palatable clause instead. 

 

 

Oct 29, 2019 06:54 AM
Rainmaker
3,376,868
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I am seeing a sharp increase as people want to move, but need a house to move to before they will sell.  

Oct 29, 2019 06:40 AM
Rainmaker
612,606
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

If the buyer does not have a contract on their existing home, the "subject to the sale of..." will go nowhere.

Must have a contract in place with a closing date not too far out, and even then the buyer has no negotiating power.

Eve

Oct 29, 2019 06:28 AM
Rainmaker
536,539
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

I just closed one with the contingency of a home closing in another state.  The seller held on and we got it done.  I represented the buyer relocating to our area. 

Oct 29, 2019 06:19 AM
Rainmaker
2,053,404
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Not at all common in my market Steve Penner . If I had to guess I'd say maybe 1 out of 200 listings would have such wording.

Oct 29, 2019 06:14 AM
Rainmaker
844,112
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

It happens, but as a seller's agent I would be loath to recommend accepting such a contingency as it could be a can of worms.

Oct 29, 2019 06:10 AM
Rainmaker
1,598,130
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

 Not common at all. 

Oct 29, 2019 05:27 PM
Rainmaker
1,001,093
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

We call them contingent sales because the sale is contingent on the sale of the buyer's first property in order to furnish the cash to buy the second property.

They are not that common although in a slowing market we tend to see them more often.

If the circumstances and details of the first sale make sense, such an offer can be acceptable...unless a non-contingent competing offer is available. 

Oct 29, 2019 04:52 PM
Ambassador
3,145,610
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Very rare - I have not seen one in over 10 years.  Rarely accepted.

Oct 29, 2019 02:15 PM
Ambassador
1,875,058
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

It is more common during a slow market. "Subject to the close of..." is more common. 

Oct 29, 2019 07:38 AM
Rainmaker
1,424,950
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

More than they were 10 years ago.  People are waiting to find the perfect house before listing theirs, quite often.  Most of the time now we say "come back when your house is in escrow."

Oct 29, 2019 07:37 AM
Rainer
249,473
Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse specialist

50% of condo deals and 35% of all co-op deals here are all cash. Anything beyond a financing contingency isn't too common. That said, in very limited situations it might be workable but it definitely isn't an ideal offer.

Nov 27, 2019 09:21 AM
Rainmaker
5,264,590
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I have a listing that is contingent on a replacement home.

Nov 02, 2019 05:11 PM