Reply to Contingent vs. Non-Contingent On Sale of One's Home- Other's Experiences?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think sellers have a somewhat irrational bias against contingent offers. Last summer, we made a contingent offer (1.25 million) on a house in McLean that had been sitting on the market for 1.3 million. The sellers didn't even consider it. Half a year later, the house sold for 1.1 million. The irony is that houses in our current neighborhood have been selling within a few days, without an open house. So if the sellers had accepted our offer, they would have done much better from any point of view. [/quote]

It's not irrational. No one wants to take on the risk of waiting for a contingency to be removed. The goal is to close and complete the transaction. $1.25 million means nothing if it doesn't go to close. [/quote]

It depends on the level of risk involved, of course. In this particular case, the risk was low: our house (in a much hotter market segment) would have sold in a few days, similarly to other houses in the neighborhood (there was a very recent comp that sold within 2 days for the asking price).

At any rate, the cost of not taking the risk was 150k and extra six months of keeping the house on the market. [/quote]

I gotta ask: why didn't you list your house, go under contract, and then resubmit your offer on the house? You say it sat for 6mos after...[/quote]

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