To make a “Contingent” offer…or not
I recently had the opportunity to share some thoughts on the use of a “Buyer’s Sale of Property” contingency for a home they like. They like the home, but are concerned that they have less price leverage with that contingency included. Here’s what I told them:
It is true that a Buyer conceivably have less negotiating power when making a contingent offer, but sometimes the Seller has a bottom line that ignores that element; that is, their opinion of value is not tied to a contingent v. a non-contingent sale.
It is also true that it is relatively unique for a Buyer to find a situation in which a) they like a home and b) the Seller is in a position where they might seriously consider a contingent offer on that home.
It is also relevant to those Buyers who might make a contingent offer that if such an offer is accepted and goes through to close, it will likely help the Buyer avoid the “two moves” situation that selling first and then buying often requires. That avoidance can save real out-of-pocket dollars (movers, storage, short-term or broken leases) and allow the Buyers to avoid sometimes costly disruption to their lives and careers.