Real estate question............

[mla2177]

Say I put an offer on a new home in a development (spec home) and they accept my offer but I have a contigency on selling my home. Can they sell the home if someone comes in with a better offer and no contigency?

 

[golfgal]

They have to give you first right of refusal before they can accept another offer--usually you have 24 hours to remove the contingency. Depending on your contract even if you remove the sale of your home contingency you usually have a pre-written back up in the contract that it is contingent on financing and if you can't qualify for a second loan with your first loan on your existing house you have an out there if your home doesn't sell. Read through your offer contract and see what it says.

 

[The Mystery Machine]

Yep, generally they come to you and they will tell you that someone else has made a better offer and give you a chance to come up with the cash....
However, read the "fine print" before you sign, it will give you, YOUR specifics.

 

[bicker]

That would be great if they'd actually accept an offer with a contingency. We've purchased new homes twice, and both times they had boilerplate sales contracts for which they would accept no amendments.

 

[honeymom]

That would be great if they'd actually accept an offer with a contingency. We've purchased new homes twice, and both times they had boilerplate sales contracts for which they would accept no amendments.

The market has changed a lot and contingent offers are being accepted where they weren't before.

 

[iloveboardwalk]

What golfgal said is correct, in most cases, you should read their contract front to back before you agree to it. If it is possible, get yourself a buyer's representative. Builder's contracts are...ridiculous. They are so slanted to the builder it's unbelievable, I'm not just talking about a contingency here. A buyer's agent is paid by the seller so it shouldn't cost you anything. If you;ve already been to the subdivision, the builder may not allow it. Most of the time, your Realtor must accompany you on your first visit.

bicker, you are correct that most builders will not change anything on their contracts, but depending on the local market, some builders will accept a contingency. In many parts of the country, the inventory is in the market is so high that builders are making many more accomadations than they normally do.

Good luck!

 

[bicker]

Why am I never that lucky?

 

[ducklite]

Builders here in Orlando are giving away free pools and cars to get people to buy homes. I can't imagine with the inventories they currently have that the OP's situation would happen here. Three years ago, the builder wouldn't even give a mortgage contingency in the contract. If you couldn't get a loan you were out your $5-10K deposit.

Anne

 

[iloveboardwalk]

Why am I never that lucky?

LOL! Timing is everything!

Builders around here are offering the most insane incentives. There is one subdivision back in November that was offering a free in-ground pool to close by December on one of their inventory homes. ANother earlier this year was offering a car with free gas for a year to sell the last homes in a closing out subdivision. Some builders are offering from 6%-10% to the buyer's agents (customary is 3%) to bring them buyers.

The bad news is for people trying to resell their homes in neighborhoods where the builder is still selling. The builders can vastly outsell them with incentives. But all that will even out given some time.

It's a buyer's market baby!

 

[iloveboardwalk]

Builders here in Orlando are giving away free pools and cars to get people to buy homes. I can't imagine with the inventories they currently have that the OP's situation would happen here. Three years ago, the builder wouldn't even give a mortgage contingency in the contract. If you couldn't get a loan you were out your $5-10K deposit.

Anne

Oh yeah, here too, 18-24 months ago, the builders were such unbelievable jerks. They are eating a little crow now.

 

[SillyMe]

Builders here in Orlando are giving away free pools and cars to get people to buy homes. I can't imagine with the inventories they currently have that the OP's situation would happen here. Three years ago, the builder wouldn't even give a mortgage contingency in the contract. If you couldn't get a loan you were out your $5-10K deposit.

Anne

That's insane.

 

[iloveboardwalk]

That's insane.

That's not even the worst of it. Most builders contracts literally say that the seller (builder) can cancel for any reason at all and keep the buyer's earnest money. They breeze right past those nasty little cluases in the contract at signing.

 

[ducklite]

That's insane.

That's what we dealt with when we signed the contract to build this place. I made sure I was pre-approved for the loan amount we needed before we signed the contract.

Anne

 

[ducklite]

That's not even the worst of it. Most builders contracts literally say that the seller (builder) can cancel for any reason at all and keep the buyer's earnest money. They breeze right past those nasty little cluases in the contract at signing.

That wasn't in our contract. I never would have signed a contract like that.

Anne

 

[SillyMe]

And people complain about real estate agents. We have several builders up here that are under investigation for fraud.

 

[mla2177]

Thank you for all your responses!!!!!! My hubby was the one who said even if they accept an offer they can still sell it out from under you if you have a contigency. I guess he was right!

We are 2 miles from the beach (resort area), and we have builders giving away cars too! I heard of one development paying your mortgage for the first 6 months! It goes to show how much mark up they really have in a home like this!!!! The down side of it all is our condo isn't selling either It's been on the market since July and we haven't had one offer yet! Up until Nov, we were getting two to three showings a week.

 

[iloveboardwalk]

That wasn't in our contract. I never would have signed a contract like that.

Anne

The fact is, I've never seen a builder use that particular clause, they want to sell their houses. But, the contracts are absurd. The builders count on the buyers not really reading what they sign. Sadly, they are often correct in that assumption.

 

[iloveboardwalk]

Thank you for all your responses!!!!!! My hubby was the one who said even if they accept an offer they can still sell it out from under you if you have a contigency. I guess he was right!

We are 2 miles from the beach (resort area), and we have builders giving away cars too! I heard of one development paying your mortgage for the first 6 months! It goes to show how much mark up they really have in a home like this!!!! The down side of it all is our condo isn't selling either It's been on the market since July and we haven't had one offer yet! Up until Nov, we were getting two to three showings a week.

In November the market usually takes a stall for the holidays. Have your listing agent re-run the comps and make sure you are still priced right. The market nationwide is picking up so think positive! Good luck!

 

[iloveboardwalk]

And people complain about real estate agents. We have several builders up here that are under investigation for fraud.

Sadly, some Real Estate agents deserve to be complained about. The things I've seen.....

 

[barkley]

i believe it's all in the wording of the contract. around here with new or existing home sales if a contingent offer is structured with the seller's ability to continue to show and accept offers (with first right of refusal to the current 'buyer') that must be clearly stated in the contract. without that clause the seller cannot continue to show or receive offers. generaly even before a contingent offer is accepted the prospective buyer has to provide loan approval, so buyers will get a pre-qual/pre-approval letter from their lender showing what they qualify with their current financial standing and the realtor representing them will provide comp's that show what homes in their neighborhood are selling for to show that if they are able to sell they can come up with the entire purchase amount. some deposits are re-fundable, some are not-with some it's the price you pay to get someone to accept a contingent offer.

a year ago here-noone would accept a contingent (new or existing)-now since no houses are moving i'm not so sure. we sold in march on a contingent offer, and honestly i don't think i would ever want to again. once it's coded in the mls as pending contingent realtors don't want to show it but you still have to keep the place in tip-top order for the odd realtor that does (while you're doing the major packing for the move out date) but you also have to deal with the home inspectors, appraisers and other folks wandering around your house that the contingent buyers are sending out because of the requirements of their lender.