How to successfully make a contingent offer

Question: Dear Kari, I drove by a home with a "FOR SALE" sign and called my agent right away to find out the particulars. It was just what I have been wanting to buy. My agent knows I must sell my current home in order to buy another one. However, my agent told me not to worry, because we could make my offer contingent on selling my home first. Can you please offer more details? Answer: Thanks for your excellent question! A home sale contingency is a type of clause written into a real estate purchase contract to protect the buyer. In other words, if the buyer's current home does not sell then the deal is off, and the buyer receives all their deposit money back. On the other hand, if the buyer's current home sells, then full speed ahead toward the closing of the home, making both buyer and sellers very happy! Home sale contingencies can be risky for sellers because there is no guarantee the home will ever sell. Let us look at some of the ideas on how to make your contingent offer more attractive to the sellers: * Offer the sellers more than their asking price. * List your home slightly below its market value. * Give the sellers a copy of your agent's comparative market analysis of your home. * Offer larger compensation to the buyer's agent on your home. * Prove to the seller's agent you are approved for a loan once your home sells. * Provide the sellers with your profit and loss statement. * Offer a large earnest money deposit. * Shorten all contingencies timeframes in your offer. * Do not ask for any personal property unless it is stated in the multiple listing service. * Offer the sellers a free rent-back period after closing on their home. * Pay some of the seller's closing costs. * Provide sellers with a love of their home letter with pictures. * Give the sellers beautiful pictures of your home and all your added features. * When your agent presents your offer, make sure the sellers have a copy of your listing agreement on your home showing how aggressively you will market your home for sale. * In your listing agreement, write in an automatic price reduction if needed. * In your offer, make sure you allow the sellers to select the title company of their choice. * Use a kick-out clause in your offer. This will allow the sellers to continue marketing the home while they wait for you to satisfy your home sale contingency. Work closely with your local real estate agent. He or she will help you make wise decisions along with how to make your offer more pleasing and acceptable to the sellers. I wish you the best in your home selling and buying process! Kari McCoy, CRS, has been a Realtor for 30-plus years and owns the Kari McCoy Group, Residential Real Estate at Windermere Real Estate. She can be reached at 916-933-5274 or email sold@karimccoygroup.com. #00841588