Contingent Offers Are On The Rise In The Palm Springs Area
Dated: May 29 2017
Contingent offers are making a comeback.
Contingent sale offers are on the rise in Palm Springs. Contingent sale offers occur when a buyer submits an offer on a property that is contingent on them selling their own home. If they don’t end up selling their home, they do not have to go through with the purchase.
In 2003 and 2004, we saw a huge surge of buyer demand in the market. It was difficult for contingent buyers to get their offers accepted because in some cases, sellers would have 20 or 30 different offers to choose from.
During the housing market crash, many people were unable to sell their home, meaning any contingent offers were frowned upon because sellers weren’t confident that these buyers would end up selling their homes. Between 2011 and 2013, we saw another boom. However, equity hadn’t quite gone up enough for some sellers to feel comfortable with pulling the trigger.
Now, the market is more stable, sellers have enough equity to feel confident in buying a new home, and more and more contingent offers are coming back into play.
As a contingent buyer, it’s best to make a contingent offer after your home is already in escrow. If you try to make a contingent offer on a property when your home isn’t even on the market yet, the seller is less likely to accept it because of all of the unknowns. If the sale falls through while you are in escrow, your contingent offer protects you, and you’ll be able to get your earnest money deposit back.
If you’re a seller who receives a contingent offer, it’s important that the buyer has their home in escrow for the reasons mentioned above. It’s also important to determine where they are at in the process, i.e. have they just received an offer? Have the inspections been completed? Have all contingencies of their sale been removed by their buyer? Whether you’re a buyer or seller, know that contingent offers are no longer the red flags they used to be. If you have any other questions about contingent offers or anything else relating to real estate, don’t hesitate to give me a call or send me an email. I would love to hear from you.
Ranked in the top 1% of all agents valley wide and named one of the Palm Springs Life Top Realtors for 2019, 2020, and 2021; Will is an Associate Broker/Team Leader of the WILL COOK GROUP with Keller ....
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