Found a dream home but haven’t sold your previous home yet?  Think SUBJECT!

First Things First

Often called a “subject” or “contingent” offer….it’s short for “Subject to sale”, as in the sale of your previous home.   Writing a subject offer allows you to make an offer on a home while your home is not sold yet.  A subject to sale is a negotiated time period that allows you to sell your home after negotiating your offer.

I have three clients who have encountered “subject” offers in the last 30 days…and all three have handled them differenty.  Here’s a snapshot:

Scenario One:

Clients have been watching home in the area for 3 years.  They love the lot, the location, everything.  Home goes for sale and they aren’t even close to thinking about selling their home.  After looking at the home they entertained writing a subject offer.  However, home is an estate and the seller will not look at a subject offer. They decide to list their home immediately and have an offer within 4 days (Yes…this was within the last 30 days).  They buy new house and DONE!

Scenario Two:

Client sees dream home but feels it is overpriced.  Again, clients were not ready to sell their home.  They considered a subject offer, but have decided to try to sell their home first while waiting for seller to bring down the price of their dream home.  Writing a subject offer at this time would lock in their price and together we felt it might come down before we have their home sold. Client will take the risk of losing the home…but it’s a risk they’re willing to take.

Scenario Three:

Client sees dream home.  This time client has been thinking of making a move, but was thinking Spring ’09.  With the current interest rates they have decided that this winter would be a fine time to move.  Offer is accepted and they in turn list their home to sell. 

So, now what?

Can they lose that house?  Unfortunately, yes.  If a different offer comes in on that property the seller has the right to ask us to remove our subject.  We then have an alotted time period (negotiated in the offer) to either remove our subject and buy the home or we must withdraw our offer.

If you think you may have found “the” home for you…you have options.  Let’s talk about them!

Have More Questions? There are definitely more answers…

asalmon@firstrealtyhomes.com

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