The place for seller contingencies in our real estate market.
In today’s real estate landscape, a few interesting trends are emerging, and we’re here to shed some light on them. One noteworthy development is the rise of the seller contingency, a tool that has become increasingly important in the face of dwindling inventory. So, let’s dive into what this contingency entails and explore the current market conditions.
The seller contingency is a relatively new concept in the real estate world, born out of necessity when the market faced severe inventory shortages. Picture this: sellers eager to put their homes on the market but hesitant to do so without securing their next property first. That’s where the seller contingency form comes into play.
Even as interest rates rise and some believe buyers might be holding back, the reality is that inventory remains exceptionally low. Consequently, the seller contingency form continues to be a crucial part of many transactions.
While the concept of buyers needing to find a new home before selling isn’t new, the introduction of a formalized form over the past few years has brought clarity and structure to this arrangement. This form establishes a timeline for sellers to find their next property, setting expectations right from the start for both parties involved.
“The market is still busy.”
Think of it as a solution reminiscent of the days when short sales were common. It eliminates the uncertainty that often accompanies waiting for an indefinite period. Plus, it allows flexibility for both buyer and seller to extend the timeline, provided they do so in writing.
Now, you might wonder about the current state of the real estate market, especially with rising interest rates and the approach of fall in Minnesota. The answer is that we’re still keeping busy. Listings are hitting the market, calls are pouring in, and properties are changing hands, albeit with slightly extended timelines.
Sellers who take our advice are also investing in home improvement projects, such as carpeting, painting, and updating appliances. These enhancements are designed to make their properties shine in a market where buyer activity has slowed, and competition has intensified.
However, it’s worth noting that the buyers who are actively making offers are typically well-qualified, demonstrating their commitment with larger down payments. This trend has remained consistent throughout the fall.
If you’re considering selling your home in the spring, now is an excellent time to have it photographed and prepared. And if you have any questions or need guidance, don’t hesitate to reach out to us by phone or email.