Accepting Conditional Offers in Bidding Wars – Episode #90
Why should a Seller think twice before accepting a conditional offer in a bidding war?
Let me give you an example: Imagine you are selling your house for $500,000. Your house is worth approximately $520,000, but you have listed your house for $500,000 to create more interest and you’re hoping to get a bidding war. So you hold back offers until 1 week after you put your house on the market.
On offer date, you receive 2 offers:
First Offer: The Buyer offers you $520,000. The price you really wanted! There is also a Home Inspection Condition as well as a Financing Condition attached to this offer for 5 Business Days. This essentially means that if the Buyer is not satisfied with their financing arrangement or anything about the home inspection they can walk away from this deal with no questions asked (as long as it’s within the 5 day conditional period).
Second Offer: The Buyer offers you $500,000. The price you listed it for, but were really hoping for more. However, this offer has no conditions. This essentially means if you accept this offer their is no walking away for this Buyer. It is a firm deal.
Which offer would you choose and why?
Watch the video and listen to what happened with my client’s conditional offer just recently…I couldn’t believe it when it happened!