Good video, Benj. We're interested in a home in the $450K to $550K range. Are you saying the market is hot enough that a contingent offer on an existing home in this price range would not be accepted and is it the same for new construction?
Not necessarily. It depends on the situation. I’ve just had enough bad experiences with contingent offers that I try to avoid them when possible. And since there is still a pretty good pool of buyers in that range (relative to other price points) I’d think twice about taking a contingent offer. New construction is usually easier when it comes to contingent offers, just the earnest money is often non-refundable.
Thank you for your reply. How much does someone like Toll Brothers want in earnest money to purchase a new home? Couldn't a buyer of an existing home make a non-refundable earnest money offer as well? Sellers would have some protection in both cases. @@BenjForeman
Again, it depends. Builders have different requirements. Some take a flat rate depending on the purchase price (e.g., I’ve seen some do increments of $10k), others just do a regular 1% or more. Some are even more lenient. So for example, in the past CBH has taken a contingent offer from my clients and even made their EM non-refundable for like 2 weeks (in case they couldn’t sell their house). That’s the exception though. Specifically with Toll Brothers I can’t remember off the top of my head. Usually terms will ebb and flow with market conditions anyway, so it’s best to check. Feel free to DM me if you want me to look into it for you.
Okay, got it. Today's buyer conditions sure are better than the recent past when contingent offers weren't accepted, and you needed to either sell your home first or get a HELOC to fund an all cash offer. I really believe that buyer conditions will get even better in the next 12 months. Thanks again for answering my questions. It's much appreciated. 👍👍👍@@BenjForeman
Ouch, sorry to hear that. If you've been on market for over 2 months and haven't had one showing, you're overpriced. Probably time to have a tough conversation about cutting the price. Also, if it were me I would look at all the homes sold in the past 4 months within a 2 mile radius and see how long the average days on market was for all of them. I would first look at all of them to get the big picture, then refine it based on the size and characteristics of your house. That will give you some real data on what the current market conditions are.
@@jodydanna4286 I don't know any of the details, so I'm just talking generally, but I wouldn't be so certain that you're $10k less than you should be. Think of it this way: if a buyer has two houses to choose from that were the same (in his mind), but one was $10k cheaper, he'd choose the one that's cheaper every time. Nobody's going to willingly pay more for the same product. Something to think about....in any case, I hope things get better and you get an offer!! :)
Good video, Benj. We're interested in a home in the $450K to $550K range. Are you saying the market is hot enough that a contingent offer on an existing home in this price range would not be accepted and is it the same for new construction?
Not necessarily. It depends on the situation. I’ve just had enough bad experiences with contingent offers that I try to avoid them when possible. And since there is still a pretty good pool of buyers in that range (relative to other price points) I’d think twice about taking a contingent offer.
New construction is usually easier when it comes to contingent offers, just the earnest money is often non-refundable.
Thank you for your reply. How much does someone like Toll Brothers want in earnest money to purchase a new home? Couldn't a buyer of an existing home make a non-refundable earnest money offer as well? Sellers would have some protection in both cases. @@BenjForeman
Again, it depends. Builders have different requirements. Some take a flat rate depending on the purchase price (e.g., I’ve seen some do increments of $10k), others just do a regular 1% or more. Some are even more lenient. So for example, in the past CBH has taken a contingent offer from my clients and even made their EM non-refundable for like 2 weeks (in case they couldn’t sell their house). That’s the exception though.
Specifically with Toll Brothers I can’t remember off the top of my head. Usually terms will ebb and flow with market conditions anyway, so it’s best to check. Feel free to DM me if you want me to look into it for you.
Okay, got it. Today's buyer conditions sure are better than the recent past when contingent offers weren't accepted, and you needed to either sell your home first or get a HELOC to fund an all cash offer. I really believe that buyer conditions will get even better in the next 12 months. Thanks again for answering my questions. It's much appreciated. 👍👍👍@@BenjForeman
My house been on since July 1 and not one showing my real estate agent is telling me it’s because the interest-rate I need help lol 😢
Ouch, sorry to hear that. If you've been on market for over 2 months and haven't had one showing, you're overpriced. Probably time to have a tough conversation about cutting the price. Also, if it were me I would look at all the homes sold in the past 4 months within a 2 mile radius and see how long the average days on market was for all of them. I would first look at all of them to get the big picture, then refine it based on the size and characteristics of your house. That will give you some real data on what the current market conditions are.
@@BenjForeman we did all that and our house is 10,000 less then what it should be this hurts I just wanna go to warmer weather PA is too cold lol
@@jodydanna4286 I don't know any of the details, so I'm just talking generally, but I wouldn't be so certain that you're $10k less than you should be. Think of it this way: if a buyer has two houses to choose from that were the same (in his mind), but one was $10k cheaper, he'd choose the one that's cheaper every time. Nobody's going to willingly pay more for the same product. Something to think about....in any case, I hope things get better and you get an offer!! :)