In your marketplace is it common for home buyers to make purchase offers that are contingent upon the sale of their existing home? In Knox County Ohio the home sale contingency offer if done correctly can be a true Win/Win for both the buyer and the seller. The challenge is that so many agents and buyers don't put themselves in the seller's position and this becomes a no win for anyone. The reason this becomes a no win is because when a buyer or agent create an offer that is written stictly to benefit only the buyer...the seller in most cases says get lost or requires the deal to be non home sale contingent. There has to be something in the deal for everyone or "No Deal".
Some mistakes that many buyers and agents make is that they attempt to negotiate their offer as if they were not home sale contingent. The problem with taking this approach is that a home sale contingent deal does not offer the seller a solid guarantee that this home sale contingent buyer will actually buy their home. Many times a buyer who writes a home sale contingent offer asks to delay their home inspection contingency until the buyer gets an offer on the sale of their current home...this also weakens the buyers position because once again the seller is less likely to see a successful sale with this buyer actually take place. If the seller is skeptical that a successful sale is unlikely they are less likely to entertain this type of offer.
With the recent changes in the housing market home sale contingent offers will regain popularity and can become very successful if agents and home buyers give these types of offers some extra thought. When negotiating an offer make sure you have a letter of financial preapproval for your buyer with as few conditions or contingencies as possible. By providing this you are telling the seller that you are a capable buyer. Contingency contracts need specific language that deal with allowing the seller to continue to market and show their home to other potential buyers. This is a key factor because it gives the seller a feeling of having some security and a feeling that they do have some options. When the seller feels a sale will happen with a home sale contingent buy they are more likely to accept these type of offers.
Happy Selling and don't discount the home sale contingent buyer because they need our help and they make up a huge segment of the current housing market!