Contingent Real Estate Sales by John Biondolillo, BCK Real Estate Company Vermont

By John Biondolillo, BCK Real Estate Vermont

BCK Real Estate Vermont has seen Sellers completely reject contingent sale offers. However, some Buyers find that a few Sellers are receptive to offers that are made contingent on the sale of another property. Sellers tend to reject contingent sale offers because they are often more risky then offers that aren’t dependent on another home selling. The worst scenario is that the Buyer will price their home too high and it will not sell at all. This would, in turn, have been a monumental waste of time for the Seller and leave them back at square one, trying to find a Buyer while there home has been off the market all the while.

            There is even less room for contingent sale offers in a Seller’s market, because while the demand for listings outstrips supply, Sellers have no trouble finding non-contingent Buyers to negotiate with. Of course if the market has slowed, Sellers have much less room to be so choosy, and are more likely to accept a contingent Buyer. Also, if the highest offer has come from a contingent Buyer, the Seller will often accept this higher risk for the higher price. With a contingent sale offer, if the Buyers’ home does not sell, they are not obliged to buy the other home. However, if the contract includes a release clause, the Buyer may risk loosing the home to another Buyer if their current home doesn’t sell in time. A release clause means that the Seller can continue to market their home until the Buyer removes their sale contingency from the contract.

            Suppose you are buying a home in Barre or Montpelier, Vermont, and the Seller decides to accept another offer; if there is a release clause, the Seller will notify you to remove your contingency within a certain amount of time (generally 72 hours), or you will have to withdraw, and the home will go to the other Buyers. This is one of the drawbacks of contingent sale buying, and often the Buyer will sell their home at a lower price then they might have gotten, in order to keep from loosing the other house.

BCK Real Estate now has Vermont Realtors in six real estate offices in Vermont and if you are looking to buy or sell a home in Barre, Montpelier, Northfield, Waterbury, Rochester and Stowe, Vermont. We are your source for Vermont Real Estate. Email us at info@BCKrealestate.com.  This blog is provided for informational purposes and not intended to take the place of a licensed real estate professional.

You can also contact our individual offices:

BCK Barre VT   86 North Main Street  Barre, VT 05641   (802)479-3366

BCK Montpelier  15 State Street     Montpelier, VT 05602   (802)229-4242

BCK Northfield    17 East Street  Northfield, VT 05663  (802)485-7400

BCK Waterbury    21 North Main Street  Waterbury, VT 05676  (802)241-2000

BCK Rochester      42 North Main Street  Rochester, VT 05767  (802)767-9900

Stowe Realty/ BCK Real Estate  - 254 Mountain Road, Stowe, VT 05672  (802) 253-8484