{"id":65218,"date":"2019-03-07T13:00:27","date_gmt":"2019-03-07T21:00:27","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/?p=65218"},"modified":"2020-10-06T17:08:01","modified_gmt":"2020-10-07T00:08:01","slug":"home-sellers-increasingly-willing-to-accept-offers-from-buyers-who-need-to-sell-their-own-home-first","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/home-sellers-increasingly-willing-to-accept-offers-from-buyers-who-need-to-sell-their-own-home-first\/","title":{"rendered":"Home Sellers Increasingly Willing to Accept Offers From Buyers Who Need to Sell Their Own Home First"},"content":{"rendered":"

Seven percent of winning offers written by Redfin agents last month were contingent on the sale of the buyer\u2019s home, up from less than 5 percent last year<\/h2>\n

Here\u2019s another sign that even as the spring housing market begins to heat up, buyers have more power than they did a year earlier: offers with home sale contingencies are on the rise.
\nHomebuyers who are also selling their previous home sometimes include a home sale contingency on their offer, which means that the buyer\u2019s offer is contingent on the sale of their previous home. It\u2019s not a standard component of most offers the way that inspection and financing contingencies are, but it is a way of allowing the buyer to coordinate the timing of the sale of their previous home with the purchase of their new home and to ensure they will have the funds available to close on their new home without having to carry two mortgages at once.
\nThe share of winning offers written by Redfin agents that included a sale contingency rose to 7.1 percent in February\u2014a five-month high and more than two percentage points higher than the same time a year earlier.
\nThis new data comes from a proprietary tool available to Redfin agents in select markets to enable them to quickly and easily complete offer paperwork for customers via their smartphone. The tool has been in use for at least one year in all of the metro areas measured (Austin<\/a>, Chicago<\/a>, Dallas<\/a>, Houston<\/a>, San Antonio<\/a> and Washington, D.C.<\/a>).<\/p>\n

Share of Winning Redfin Offers Using Sale Contingencies Up From 2018<\/figure>\n

We spoke with a few Redfin agents in Maryland, one of the markets that has seen a marked increase in sale contingencies, to get some insight into why more winning offers are including the clause.
\n\u201cFewer buyers today are getting qualified to hold two mortgages simultaneously,\u201d said Redfin agent Rheetu Pal Mahajan<\/a>. \u201cThey\u2019re also concerned that they may not be able to sell their property easily so don’t want to take a chance. On the sell side, listing agents are opening up to the idea. Last year, whenever I spoke of a home sale contingency, listing agents basically implied \u2018not to bother\u2019 with submitting an offer. This year, \u2018If it\u2019s an otherwise good offer, bring it in. I will try to encourage my sellers to accept.\u2019 It\u2019s definitely a change in tune on both sides.\u201d
\n\u201cBuyers who are including a home sale contingency in their offer now are moving because they want to, not so much because they have to,\u201d explained Redfin agent Ashley Skiratko<\/a>. \u201cThe buyers\u2019 mindset is \u2018We really like this specific home and we would move for this home. We only want to list our home if we know this home we offer on is ours. We aren’t moving if our offer isn’t accepted.\u2019\u201d
\nThe bump in sale contingencies is a sign that the market is moving closer to a balance between sellers and buyers, since it signals that homebuyers are facing less competition and their agents have higher confidence that an offer with a sale contingency won\u2019t be rejected by sellers or passed over for a stronger offer with fewer contingencies. This is also evidenced by the dramatic decline in bidding wars<\/a> and increases in price drops<\/a>.
\n\u201cI\u2019ve had several listings where my clients accepted an offer that included a home sale contingency this year,\u201d said Redfin agent Deborah Kennedy<\/a>. \u201cLast year a home sale contingency would have caused a seller to immediately eliminate that offer from contention because we had plenty of other non-contingent offers. This year we are seeing very few bidding wars and homes for sale are sitting for longer on the market so sellers are more willing to take the potential risk of accepting a home sale contingency.\u201d
\n\u201cThis new balance of power is good for the housing market,\u201d said Redfin chief economist Daryl Fairweather<\/a>. \u201cSome potential buyers were scared away last year when asked to waive an inspection or financing contingency. We may see more buyers come back now that the market is more in their favor.\u201d
\nIt remains to be seen how much the market will heat up this spring, but so far the signs are pointing to a much more balanced housing market where buyers can take a little more time and be a little more cautious with their offers.<\/p>\n","protected":false},"excerpt":{"rendered":"

Seven percent of winning offers written by Redfin agents last month were contingent on the sale of the buyer\u2019s home, up from less than 5 percent last year Here\u2019s another sign that even as the spring housing market begins to heat up, buyers have more power than they did a year earlier: offers with home […]<\/p>\n","protected":false},"author":13505,"featured_media":65219,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[32],"dashboard":[],"coauthors":[],"class_list":["post-65218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-market-news","tag-housing-market-tracker"],"acf":[],"yoast_head":"\nHome Sellers Increasingly Willing to Accept Offers From Buyers Who Need to Sell Their Own Home First - 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