Contingent buyers can now win a home!

In recent years, the real estate market has been heavily tilted in favor of sellers. However, a new trend is emerging that is giving hope to contingent buyers – those who need to sell their current home in order to purchase a new one. In the past, sellers didn't have to accept contingent offers, but now, there seems to be a shift in the market dynamics.

For quite some time, sellers held the upper hand in the real estate market. With limited housing inventory and high demand, they could easily find buyers who were willing to pay top dollar. This created a challenging situation for contingent buyers who found themselves stuck in a catch-22 predicament. They couldn't make an offer on a new home without selling their current one, but they couldn't sell their current home without finding a new one. This made it incredibly difficult for them to compete in a seller's market.

However, things are changing. The tides are slowly turning in favor of buyers, particularly those with contingent offers. Sellers are now more open to accepting these offers, understanding that they may be the key to selling their property in a timely manner. This shift can be attributed to a variety of factors, including housing inventory and a more balanced market overall.

One of the main reasons sellers are becoming more receptive to contingent offers is the realization that their home may not sell as quickly as they initially anticipated. In a competitive market, sellers often received multiple offers within days of listing their property. However, with the current market conditions, properties are staying on the market for slightly longer periods. This change has made sellers more willing to entertain contingent offers when they don't have a lot of buyer choices to consider.  

It is critical for the seller to consider how quickly their buyers home will sell. How prepared are they to list it, how long will it take etc. 

In North Carolina we've been focused on due diligence fees for several years. That is money the buyer pays over to a seller right after going under contract and that gives the seller assurance that the buyer won't back out. While that is critical, Earnest Money will also become more important again because we need the buyers to have a level of urgency to get their home under contract or be more obligated to the home they are buying so the whole thing doesn't drag out.

Technically item 4c on our contract indicates the buyer needs to have their home under contract or be able to reasonably assume it will close prior to the end of due diligence, a seller can't force them to back out. In conclusion, the real estate landscape is evolving, and contingent buyers are finding themselves in a more advantageous position. The market is no longer solely favoring sellers, and they are now more willing to accept offers from buyers who need to sell their current home. This change is a breath of fresh air for contingent buyers who have been struggling to navigate the seller's market. With a more balanced market and increased options for financing, contingent buyers are finally starting to see their dreams of homeownership become a reality.