Home Buyer Question: Will They Take a Contingency on a Bank Owned Home?

By
Real Estate Agent with Realtor®, GRI, Landis e2 Real Estate, LLC

For Charlotte NC home buyers with a house to sell (and successfully close) before they can complete the purchase of another home the question of contingencies often comes up, specifically a contingency on selling and closing your current home.


Along those same lines is a frequent home buyer question - Can I use a contingency on selling my home when offering on a bank owned property to buy?


The short answer: No.


Contingencies on selling your current home aren't a match for bank owned properties
, they're just not something the banks will consider or allow.  They're simply not going to give you an "out" and take on the risk that your home doesn't close.


So what's a buyer to do when you have a house to sell?

- Get your current house sold, closed and done.  Take it out of your home buying equation (this actually strengthens you as a buyer even if you're considering a "regular" home)


- Consider doing a short-term lease for any potential lag time between when you sell your current place and close on the next home - this can also help give you a cushion for any painting/prep you may want to do before moving into the next house


- Focus on getting your current place under contract and moving toward closing - THAT is your biggest challenge right now


What not to do?

- My personal recommendation....don't even think about or consider making an offer, ANY offer on a home till your current place is solidly under contract and talk that through with your agent!


- Don't fall in love or think you'll "try" on a bank owned home with a contingency on selling your current home.  It's not going to work, banks won't accept those contingencies and unless you enjoy wasting your time....leave any bank owned homes on the back burner while you still have a house to sell and close.  Look at them online all you want but don't fall in love - they're not within your reach yet!

Originally posted at: Charlotte NC Real Estate Market, Real Estate and Local Charlotte NC Information


Copyright©2011 by Diane McDermott, All Rights Reserved, “Home Buyer Question: Will They Take a Contingency on a Bank Owned Home?"

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The content of this blog is the original content of Diane McDermott, NC Residential Real Estate Broker in Charlotte NC's real estate market serving neighborhoods in Charlotte NC

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Rainmaker
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Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Diane,

It is odd when it is a shock to Buyers, who often would not accept a Contingent offer on their listing, when I have to explain that the bank won't accept their Contingent on Selling Offer.

Mar 25, 2011 09:49 PM #1
Rainmaker
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Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

True.  I've had a couple of clients lately who want to get right to the good stuff (buying) without dealing with the painful stuff (selling).  They say, I've got to know where I'm going before I sell.  I say, Unfortunately, that's not how it works.  In this market, where it can take months or years to sell, it's a rare seller who will consider a contingency contract -- and, as you said, bank-owned properties absolutely won't entertain a contingency.

Mar 25, 2011 10:17 PM #2
Rainmaker
564,387
Diane McDermott
Realtor®, GRI, Landis e2 Real Estate, LLC - Charlotte, NC
Charlotte NC Real Estate Market

Mike, it is sometimes surprising to buyers that there's no requirement for any seller to accept a contingency on sale of their home and some outright refuse to even consider them!

Dianne, there's definitely a lot more "fun" on the buying side these days but gotta get through the tough stuff first :)

Mar 26, 2011 10:52 AM #3
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Rainmaker
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Diane McDermott

Charlotte NC Real Estate Market
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