CONTINGENT OFFERS ARE BACK!
I know...you are thinking all offers have always had contingencies. However, I am speaking of offers contingent on another property selling. It is interesting to participate in the evolution of climbing out of the real estate hole we have been in.
First, anything with four walls would sell, and over asking price....the insane days. Buyers were given loans that were fine...as long as they could refinance in 2 years.
However, it was realized that it was impossible to sustain the kind of increases in values that had happened over recent years. The real estate market essentially came to a halt. Prices dropped faster than a racehorse at the derby...and inventory went up just as fast.
The refinancing into a conventional loan could not happen due to the inability of the properties to appraise even close to the paid price 2 years ago. We were then treated to the joys of foreclosures and short sales. The good news was that first time home buyers now had a great opportunity to purchase a home with a conventional rate and at a very good price.
Instead of homeowners moving up to bigger or better homes, the banks are now the sellers. The move up neighborhoods are stagnant with middle and upper end properties which first time home buyers cannot qualify for. These properties that are being sold by homeowners in hopes of moving to a larger home or better location are not selling.
The sellers have many choices for their next home, but very few buyers for their present home.The result is the "Contingent Offer"...and we are starting to see them in increasing numbers.
Isn't this an interesting time we live in? At one time we would scoff at a contingent offer. After all, what seller in their right mind would accept a contingent offer and essentially take their home off of the market? Now, we will accept a contingent offer without blatting an eye...after all a bird in the hand is worth 2 in the bush! Ah yes...we live in interesting times!
www.PaulaSwayne.com
First, anything with four walls would sell, and over asking price....the insane days. Buyers were given loans that were fine...as long as they could refinance in 2 years.
However, it was realized that it was impossible to sustain the kind of increases in values that had happened over recent years. The real estate market essentially came to a halt. Prices dropped faster than a racehorse at the derby...and inventory went up just as fast.
The refinancing into a conventional loan could not happen due to the inability of the properties to appraise even close to the paid price 2 years ago. We were then treated to the joys of foreclosures and short sales. The good news was that first time home buyers now had a great opportunity to purchase a home with a conventional rate and at a very good price.
Instead of homeowners moving up to bigger or better homes, the banks are now the sellers. The move up neighborhoods are stagnant with middle and upper end properties which first time home buyers cannot qualify for. These properties that are being sold by homeowners in hopes of moving to a larger home or better location are not selling.
The sellers have many choices for their next home, but very few buyers for their present home.The result is the "Contingent Offer"...and we are starting to see them in increasing numbers.
Isn't this an interesting time we live in? At one time we would scoff at a contingent offer. After all, what seller in their right mind would accept a contingent offer and essentially take their home off of the market? Now, we will accept a contingent offer without blatting an eye...after all a bird in the hand is worth 2 in the bush! Ah yes...we live in interesting times!
www.PaulaSwayne.com
posted by Paula Swayne at
8:27 PM
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