Which Contingency is Acceptable in This Market?

[Anonymous]

You can ask to shorten the time frame for the inspection. We were able to get ours done quickly and had 24hrs after the report instead of days.

[Anonymous]

I mean those are common and typical contingencies. Why do you find them objectionable?

[Anonymous]

Contingencies are common in normal market.

Buyers have to be crazy to waive it in current environment. No one wants to be bankrupt while trying to buy a house.

[Anonymous]

We just got under contract on our starter house with only financing contingency. But we also priced low. However, if I were buying I would do all the standard contingencies…because why not? Times have changed with a looming recession and sky high interest rates and people want to make sure they’re making the right decision for them.

[Anonymous]

Anonymous wrote:As a buyer right now, I won’t waive anything. Just too dangerous with this amount of flux happening. I’d just walk if seller tried to draw a line on that. Feels like prices are softening fast so feeling zero pressure to take any risks to get a house.

+1 In this market I’d take it and be glad for the one offer.

[Anonymous]

Don’t even try to meet in the middle on price. Take it. If you’ve had one offer below ask, you’re priced too high and the market is getting worse, not better. Let the buyer walk and you’ll be coming down more then 5% to get your next one.

[Anonymous]

Contingencies are normal in the last two years were an anomaly. If you Got an offer for 5% less with these interest rates you got a great offer.

[Anonymous]

Anonymous wrote:Contingencies are normal in the last two years were an anomaly. If you Got an offer for 5% less with these interest rates you got a great offer.

5% below asking is fantastic with such a high interest rate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here. I sincerely apologize but I need to amend my original post. The offer was actually 5% under asking not 30%.

How did you type 30 rather than 5???

What can I say, brain fart. Baby woke up several times last night so I'm kind of fried.

OP here - to answer questions, yes, we feel that our home is priced well. it's priced 5% less than what 2 other houses in our neighborhood have gone under contract for this month. The houses aren't exact equivalents (one main difference is walk out basement vs underground basement) but we've priced it to take that into account. We live in a very derisible neighborhood in MoCo and our house is in great shape and staged well. Sadly, though, only one offer so far.

OP - 5% is not bad. Take into consideration it still needs to appraise. The appraisal could come in lower than list price, so you could end up lower anyhow. Contrary to what DCUM will have you believe, appraisals are not in the bag. Homes do not always appraise at the list price, especially in a quickly changing market. I would accept the offer. Think long-term.

[Anonymous]

I think dropping contingencies is an enticing way for buyer to get their offer picked by seller over other offers and letting buyers keep contingencies is a smart way for seller to feel buyers comfortable enough to put offers.

[Anonymous]

We accepted all three contingencies on the our property that is closing on Friday. I’m not sure you have a choice.

[Anonymous]

Financing contingency could screw you for sure (what increase in rates does it allow for?), but that may be standard now given the market. I’d be more worried about their offer price. 30% discount is crazy, unless your house has been listed since April or something. I wouldn’t play ball with that. Counter?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Contingencies are normal in the last two years were an anomaly. If you Got an offer for 5% less with these interest rates you got a great offer.

5% below asking is fantastic with such a high interest rate.

It’s fantastic under any circumstance