“I Know that Block!”

Perhaps the key to what Realtors call a Contingent Offer (one where the would-be Buyer first has to sell their current home) is . . . surprise, linksurprise . . . the Buyer’s current home (referred to as “the backup home”).


–Where is it?
–What kind of shape is it in?
–Assuming the home isn’t already on the market, what is the Buyer going to list it for, and will they be able to sell it for that (or close) before their Contingency expires? (typically, 60 – 90 days).

Deal Down the Street

So, when a Seller I represent received a Contingent offer the other week, it was lucky — and enormously helpful — that I had sold a similar home to Buyer clients of mine literally down the street last Fall.

Of course, that was after showing every “For Sale” home in the immediate area as well.bullseye

Barely three months later, the nearby home my clients bought was now a Comp for the backup home (in fact, a bull’s-eye), and the appraisal for my client’s home arguably established the value of the backup home as well. 

Knowing the Comp’s REALLY Well

Bottom line?

I was able to authoritatively discuss prevailing market prices in the area with my Seller, and explain that their Buyer was highly likely to be able to sell their current home quickly, and therefore buy my clients’.

They agreed to the (Contingent) deal.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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