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Reverse Contingency – What it is and why you should care

Written by Michael Cipolla

One would say that contingencies make the buyer’s blood boil when they see the words “subject to the seller finding suitable housing!” One would also say “tough luck!” In today’s competitive market, we have to get even more creative when it comes to working with our sellers. Frankly, when there’s not enough inventory and the buyers are lining up down the street at the end of January, temperatures in the teens, to see an AVERAGE house, I think you have your answer. YOU ARE IN CONTROL!!!!!

LET’S TALK ABOUT RC BABY, LETS TALK ABOUT YOU AND ME, LETS TALK ABOUT ALL THE GOOD THINGS…When you work with a good realtor!

If you’re thinking about selling your home in today’s market but are apprehensive about what you’ll do if your home sells before you’ve found a new place to live, there are some creative options you can turn to. One being a reverse contingency concept. Reverse Contingency has become more and more relevant these days due to the low inventory. Homes in Buffalo are selling fast and we are seeing a real shortage of homes around the 200-350k range, but you don’t have to feel it’s impossible to move.

To explain things further. Some sellers are inserting an RC clause that makes their home sale contingent on finding another home to buy. This is the opposite of a normal contingency clause that makes a home sale contingent on whether the buyer can sell their home. The point is to buy you time but to get these buyers under contract while you look. As the seller, you would list your home and once you have accepted an offer, your agent would put a clause in the contract stating that we are willing to sell this house, only if we can find suitable housing within a reasonable time. When you accept an offer on your home, the buyer understands it will be contingent on you finding a house under the terms YOU want. (you don’t have to feel pressured to find a home that you don’t completely LOVE anymore) This also allows you to now take advantage of these multiple offer situations. If there is a demand in your area, there is NO reason you should feel worried, you are in the Driver’s seat.

Typically, most buyers might be turned off on this or even cancel the deal because they don’t want to wait any longer …. but again, the market has changed to where YOU have the CONTROL. It’s hard enough to find a property so buyers will most likely wait if they know they can lift the weight off their shoulders and not have to go look at any more houses, compete in multiple offers, waste time and energy etc.

NO SWEAT

Another benefit would be, you can go compete on the buyer side because you can be NON-contingent. At the end of the day, you can stay in your current home, back out of the deal if you don’t find a home that you like, or even try to extend that contingency to give you more time to find a home. We are in a seller’s market with little inventory, buyers are being patient and willing to wait for the home they want!

TRUST YOUR INSTINCTS, TAKE CONTROL AND CALL US TODAY!

THE LOCAL TEAM

Selling a home can be gratifying but also stressful. With the right team in place, the benefits are tremendous. If you are thinking about buying or selling a home or want to know more about how our team can give you support through this process, give me a call today! Our team and I would be happy to help you!

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