Can Contingent Contracts Work in Austin’s Real Estate Market?

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kitchenWhen you are both buying and selling a home, oftentimes you will want to have the proceeds from the sale of your current residence as the down payment for the next home. Making that work requires a Contingency – you will close on the purchase contingent of the closing of the sale. In the hot market we have in Austin, contingent sales are sometimes impossible to negotiate, but not always. It all depends on the agent’s ability to handle these types of transactions as well as the specifics of the homes being bought and sold. For example, a home that is in a highly desirable neighborhood where there is low inventory, priced within the average price range or below, and in excellent condition, is likely to receive multiple offers and a contingent offer is likely to be disregarded, unless the agent does an incredible job negotiating. However, a home that is in a desirable neighborhood but with higher inventory, priced on the high end and maybe not in perfect condition, that seller may not receive multiple offers and therefore might be more likely to accept a contingency. The buyer agent’s job in any of these situations is to provide good written data showing the contingency is low risk for the seller, and therefore should be accepted. Home builders are also often willing to make a home purchase contingent on a sale, but each builder and each community will have different stipulations. Having an experienced agent on your side can make a huge difference when you are moving.

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