Friday, March 10, 2017
Home of Choice Contingency - What's That?
That's the basics of it. And, it can be problematic when inventory is so low!
A lot of Home of Choice contingencies right now. Just people finally having enough equity to move but, quite frequently, don't want to move into any temporary housing until they find a replacement home. So, the buyer has to wait til Sellers find, and get accepted on, another home.
Sounds easy? Hah. When inventory is tight, Sellers have lots of buyers to pick from. That is a challenge for a Seller that is contingent upon their home actually closing escrow to then close on a new one.
See the spider web getting more and more tangled here?
Not a lot of homes to pick from in total. Not a lot in that particular Seller, that is also now a Buyer's, price range. Cut that down further with the competition on many homes...and we've got a bigger challenge.
But, most buyers are willing to stick it out for Seller to find their replacement property. Normal is 17 days to find. I've got a buyer right now that is extending that time for another 7 to Seller. BUT, we locked in my Buyers loan rate as...oh yes, rates crept up.....so now we really need to get that Seller a home!!
If you are completely confused by this, just call me....I'll explain it even further!