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][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]

Because while we liked the house, we didn't think it was worth the hassle. And was annoyed that the sellers had overpriced it so much (I actually predicted quite well what it would eventually sell for) [/quote]

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