Understand the Contingencies When Negotiating an Offer

Recently some clients of mine made an offer on a new 2 bedroom condo in the Sheridan Park neighborhood of the Uptown area of Chicago. Sheridan Park is bordered by Lawrence and Montrose on the north and south and Broadway and Clark on the east and west.

The offer was contingent on the buyers selling their 1 bedroom condo in the Lakeview area. The developer would accept a contingency based on the buyers getting a contract for their condo, but wouldn’t agree to accept the offer contingent on them selling their condo. I explained to the listing agent that no buyer in their right mind would agree to such a contingency. If the buyers got a contract on their current condo, but weren’t able to close the sale before the close for the new condo, they would lose their earnest money. My buyers wisely passed on the developer’s counteroffer. No home is worth that kind of risk.

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ABOUT THE AUTHOR

Fran Bailey Fran Bailey is a Realtor who has been quoted in numerous Chicago and national publications. To schedule showings for any listings, get a free market analysis for your home or to contact Fran email her at fran.bailey@bairdwarner.com or call 773.793.4516. Learn More

Comments

  1. Diane Scholten says

    Fran, one of the mortgage options we offer at my company is the “House to House” loan for just such situations. So it IS possible to move forward on a deal such as this. But I agree with you – it’s NOT in the buyer’s best interest. That said, sometimes buyers do fall in love with a house and don’t want to lose it- in that case a wraparound loan like our House to House can be used.

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