When Contingencies Halt Negotiations

I found this article particularly appropriate this morning as I was catching up on my real estate news. While it's an article written out of Florida, it still reflects what's going on in our market here in Wisconsin as well.

Daily Real Estate News June 26, 2007

With the amount of time that homes are sitting on the market climbing, more practitioners are facing real estate deals that are contingent on the buyer selling a current residence. But before accepting a contract contingency, Apple Valley, Minn.-based REALTOR® Steve Fiorella urges sellers to determine whether the buyer "is marketing their home aggressively and pricing it accurately."

Buyers might want to indicate their commitment to the purchase by reducing the price of their existing home to ensure a speedier sale, Fiorella says.

However, real estate practitioner Faith McGown says buyers would be in a better position if they sell their current residence prior to making an offer. McGown suggests that those who need a contingency might want to make a full-price offer to compensate for having a contingency. Fiorella recommends they offer more earnest money — some of it nonrefundable.

Source: Lakeland Ledger (Fla.), Aimee Blanchette (06/23/07)