Mr. Seller - we got an offer, BUT.......

By
Real Estate Agent with Bradenton Realtor and Sarasota Homes for Sale

I just got an (verbal) offer on one of my listings. Usually that would be good news, but...

The home is listed - let´s say - at 350,000. The offer came in at 290,500. In our market this is something that happens. 

The next thing is, that they offer a deposit of $1000 (not that much), the sale is contingent to the sale of their home (closing is in September) and our closing would be mid November - but they "really believe their contract should go through". Of course we still have a financing contingency...

I know that my seller won´t be to enthusiastic about this offer.

Any suggestions for my seller?

Any good or bad experiences with kick-out or backup clauses?

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Tags:
offer
contingency

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
114,392
Renee L. Norton
Birmingham, AL
If you can negotiate a price your seller can live with, include a 48 hour break clause and then keep marketing the house for another contract, at least you would have a contract if nothing else materializes before November.  You didn't say how long the house has been on the market.
Jul 16, 2007 03:47 PM #1
Rainer
5,772
Kim Caldwell
American Realty - Lake Jackson, TX
You could always ask for more earnest money.  Definitely ask for a 48 hour break claus as Renee stated. I would explain to my seller that this does not stop the showing of the property or being able to receive another contract.  Also, why are they waiting to close in November, if there home closes in September.  I would try to move that up into October.
Jul 16, 2007 03:53 PM #2
Ambassador
2,469,552
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

The only answer to a verbal offer is a verbal "write it up and I'll present it".  Make them work and maybe the price will improve if they have to do some serious work. 

Why get a seller all worked up over something that has a 99% chance of failure?

If they do present it in writing, then it would depend on

  • comperable prices
  • equity
  • DOM

And the seller's need to sell.

Jul 16, 2007 03:56 PM #3
Rainmaker
1,391,119
Donna Harris
Donna Homes, PLR - Austin, TX
Realtor, CDPE & ASP - Hill Country Lakeway Austin
I agree with Lenn that you need to tell them to put it in writing.  Also, I always advice my sellers that it's not usually in their best interest to accept an offer on their home contingent on the sale of the buyers' home is the buyer cannot show evidence that they currently have an approved buyer in escrow on their house.  If their is no contract on the buyers' house yet, you never know when they'll get an offer, muchless a contract, and maybe they might not even make that November deadline... but it is up to the seller if they want to take the house off the market.  In my area, that would mean the status would change to AK (active kickout) and probably 99% of agents should houses that are only A, not AO, AK, AC, or anything else but truly active... so it might hinder their ability to receive a backup offer.
Jul 16, 2007 04:01 PM #4
Anonymous
Anonymous
They need to put it in writing first and then the seller can counter.
Jul 16, 2007 05:26 PM #5
Rainmaker
129,326
Jim Little
Ken Meade Realty - Sun City, AZ
Your Sun City Arizona Realtor

My two cents, in no particular order:

  •  Get it all in writing
  • If the offer is contingent, what good is more ernest money? If you think you need more earnest money, get a time for it to go hard.
  • Insist on a time frame to remove contingencies or cancel the contract.
  • Continue to market the home. This may not be effective if your market has a lot of inventory.
  • Definitly do your due diligence re the strength of the other escrow.
Jul 16, 2007 06:13 PM #6
Post a Comment
Spam prevention
Show All Comments
Rainer
59,204

Axel Weiss

Sea to Sky Realty
Ask me a question
*
*
*
Spam prevention