Bump- let's hear from the pros

Do you have a kick out clause in the sales contract?

We once had buyers with a contingency like that. I looked up their listing online, did some research of my own, and realized they were trying to sell for about 25% over what their neighborhood and the market could support. They had done a lot of remodeling they wanted to recoup the cost for. It has been three years of them listing and relisting, and guess what?--they still haven't sold.

Do your research and figure out what the risks really are--why haven't they sold?

We did, to someone else.

Are they extending the due diligence period because they ate still following up on report findings, or do they want to extend the contract because they don't have a buyer?

They don't have a buyer. They started out overpriced and then dropped the price to where they are now getting showings. Our realtor believes that they will sell it. They have already had our house inspected and appraised.

It's better to wait for them than to start over again looking for new buyers. I am not a pro though.

I guess it depends upon what your market is like and how much of an extension they want. If you refuse, how likely is it you will find another buyer in the time frame of the extension? You said your agent thinks they will sell their house. That may be. But when? Could you sell to someone else more quickly? And, what kind of offer would you get?

Does your agent have a skin in the game/ sale of their house?

Our agent does not have skin in the game on the sale of their house other than getting ours sold.

As mentioned several posts up, did your Realtor include a kick out clause along with the contingency for the sale of buyer's home? A typical kick out clause allows you to continue to market and show your home to other buyers and if another acceptable offer comes in then the buyer with the kick out clause has 72 hours to release their contingency or cancel the purchase to allow you to work with the new buyer. Discuss this option with your Realtor.

It is risky in my market to accept an offer with a contingency for the sale of buyers' current home UNLESS the home is already under contract with another buyer and the appraisal and mortgage conditions have been satisfied for their buyer. Your market may be different.

To me, it sounds like your buyer is stretching by over pricing their home to start. They just aren't ready to buy now if they have no buyer for their home. How long have you had this contingency? I would be very wary of extending it at all since they don't have a buyer for their home.

BTW, I'm a Realtor and the contingencies I see that are accepted most often are those I described above....not contingent upon finding a buyer.

I don't know that we have a kickout clause. We are allowed to keep showing but in this market it seems that once a home goes under contract buyers don't want to look at the home anymore. We have had the contingency for a little over 30 days. You are right, they weren't ready to buy when they found our home and so were behind in putting their house on the market. Our realtor believed that if priced right which it is where it is now that their house would sell. It is a risk either way just not sure what to do. Has anyone had experience with a buyer coming back and making a new offer after the due diligence period has ended for a contingency?

It is true that once your home shows under contract in the MLS the number of buyers willing to come look at your home drops dramatically. We have a separate category in our MLS where we can indicate that the seller is seeking backups which usually means they feel the first contract is more likely to fall through. You may or may not have the same category in your MLS. If you don't, that is one more reason to not extend the contingency. When you show your home as 'contingent' most buyers knock that particular home off the list as possibilities. Better to show your home as available which you can only do by not being under contract with a weak buyer or a buyer that isn't ready.

BTW, the kick out clause is standard in the industry.

Denita, Can the OP add a kick out clause now--if they decide to grant the extension?

Yes. Since the buyers are asking for an extension, this is the perfect timing to make other changes to the contract to protect the seller's interest.

NAR has the standard kick out addendum. Usually the form is customized in each state....at least in the states I have seen. The OP's agent should ask her managing broker if she isn't familiar with the form.

We are in North Carolina and apparently kick out clauses are not allowed which explains why other buyers don't bother to look at under contract houses.

Oh, that explains a lot. I wouldn't extend given this new info, but I don't have your market information. It is much more risky to have a contingency like the one you describe without a kick out clause. Risky for you, not the buyer. After all, your buyer is tying up your house without any risk at all. If they don't sell their home, they get their money back and you get to start over. Not a risk I would want one of my sellers to take.