Should you accept a contingent offer on your house?

Here's what you need to know to decide.

Should I Accept a Contingent Offer on My House? Contingencies are pretty common in real estate. In fact, aside from cash ones, most offers include at least one contingency clause to protect the buyer. Are you currently selling a property? Wondering "Should I accept a contingent offer on my house or investment property?" Here's what you need to know to decide. What is a contingent offer? A contingent offer refers to an offer on a house that hinges on certain conditions -- or contingencies. It basically means that the buyer wants to purchase the house, but these conditions will need to be met before they'll finalize the deal. There are four common types of contingencies you might see in an offer: 1. Mortgage contingency: This says the purchase is reliant on the buyer's ability to get a mortgage loan. If they're unable to secure financing, they can back out of the deal 2. Inspection contingency: The inspection contingency allows the buyer to have the home inspected. Once the inspection is complete, the buyer can either renegotiate or cancel the contract based on its findings. 3. Appraisal contingency: With an appraisal contingency, buyers have the option to break the contract if the home doesn't appraise at the price offered. 4. Home sale contingency: Home sale contingencies are for buyers who are also selling their current property. They allow the buyer to back out of the transaction if they're unable to find a buyer for their home within a certain time period. Some types of contingent offers are riskier than others. Home sale contingencies, for example, are extremely risky, since they make your sale reliant on the sale of another property (potentially two, if the prospective buyer's buyer has to sell a house, too). Contingent offers are normally higher in price because the buyer understands that the sellers is taking a risk and hopes that the price compensates for the risk factor. The drawbacks of contingent offers Accepting a contingent offer really only has one benefit: You might have a done deal. But that's a big "might." Contingencies come with real risks, and if you take your home off the market in hopes those conditions will be met, you could find yourself disappointed weeks or months down the line. In that case, you'd have to start over and find another buyer. This could throw off your own goals (maybe you were trying to buy another property), as well as any deadlines you were trying to meet (investors might need to sell before their hard money loan gets more expensive). All in all, the drawbacks of accepting a contingent offer include: • The deal might fall through. • You might have to renegotiate or accept a lower price. • It could take longer to sell your home. • It could cause financial problems or make it hard to buy your next property. The main point is that contingent offers are risky, and you'll want to seriously consider whether it's right for your situation before signing on that dotted line. Making your decision If you're faced with a contingent offer, there are a lot of factors to take into account when making your decision. The first thing to consider is what kind of contingency you're looking at. Other considersations include timing, and where the housing market is.  The bottom line Contingent offers are risky, but they're actually quite common. Make sure you're ready if one comes along, and know how to protect yourself if you do accept one. Lean on your real estate agent if you need help here; they'll have a good handle on whether contingent offers are smart in your specific situation. So if you have any questions, whether you're buying or selling, give me a call at 602-413-8195. I'm here to help. Have a great day, Monique Walker RE/MAX Excalibur Looking to buy a Phoenix Metro Market Home? Looking to sell your Phoenix Metro Market Home? Call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions. Tom Ross Bay Equity Home Loans (602) 791-5861 tross@bayeq.com Sincerely, Monique Walker RE/MAX Excalibur Phoenix, AZ Mobile: (602) 413-8195   Monique@MoniqueSells.com Monique Walker RE/MAX Excalibur 8510 E. Shea #100 Scottsdale, AZ 85260 Manage your preferences | Unsubscribe View this email online.

August 2020 home price update

This market rebound is unlike anything we've ever seen.

Friends and Clients —  And...we're back! The real estate market is currently experiencing a rebound unlike anything we've ever seen. If you've been waiting on the sidelines, just know right now is a unique moment you will want to take advantage of. Let me give you the details: According to the National Association of Realtors, sales of existing homes jumped nearly 21% in June compared to May (the last months for which we have complete data). This is the largest monthly gain since tracking began in 1968. Sales of new homes also jumped by 13.8%, the largest one-month increase since 2007. Much of this reflects pent-up demand from the spring season, which was paused by the coronavirus pandemic. However, it's also a sign of more fundamental changes. For example, first-time buyers accounted for 35% of all buyers in June. That figure had been as low as 30% in recent months. This could be an indication that, with social distancing restrictions and new work-from-home setups, more folks are realizing the value of owning their own home. Also helping things are record-low mortgage rates. Several weeks ago, the 30-year fixed mortgage rate fell to an all-time low of 2.87%. That's a full percentage point lower than a year ago. These low mortgage rates are making homes more affordable; they are also supporting continued price growth. As a result, June made history: The median price of an existing home sold rose 3.5% annually to the highest price on record. The point of all these statistics is simply this: If, like most folks, you've been sitting on the sidelines because of the pandemic, now is a great moment to act. If you are thinking about selling, you will have a strong tailwind because inventory is so low. At the end of June, the supply of existing homes for sale fell 18.2% annually. This means there is a lot of unmet demand, so you could sell quickly and for top dollar. If you want to get an idea of what your home could sell for in the current hot market, take a look at the following home value calculator, which is based on recent Phoenix sales: Enter your address here to find out what your home is currently worth Of course, with the pandemic situation still developing, there are no guarantees about how things will look in several months. However, right now is a golden moment for the real estate market.  So if you have any questions, whether you're buying or selling, give me a call at 602-413-8195. I'm here to help. Have a great day, Monique Walker RE/MAX Excalibur Looking to buy a Phoenix Metro Market Home? Looking to sell your Phoenix Metro Market Home? Call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions. Tom Ross Bay Equity Home Loans (602) 791-5861 tross@bayeq.com Sincerely, Monique Walker RE/MAX Excalibur Phoenix, AZ Mobile: (602) 413-8195   Monique@MoniqueSells.com Monique Walker RE/MAX Excalibur 8510 E. Shea #100 Scottsdale, AZ 85260 Manage your preferences | Unsubscribe View this email online.

Helping agents thrive on the Monique Walker Team

Here's what Melani Beauregard has to say about being on our team.

An Interview With Our Awesome Buyer's Agent What's it like working on the Monique Walker Team? How have we structured our environment so that our agents can thrive? Today I'm joined by Melani Beauregard, one of our team's awesome buyer agents, to answer these questions. If you'd like to do more in your career, you can—you just need the right environment. To see Melani's full interview, watch my latest video. Watch Our Video ▶ Looking to buy a Phoenix Metro Market Home? Looking to sell your Phoenix Metro Market Home? Call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions. Tom Ross Bay Equity Home Loans (602) 791-5861 tross@bayeq.com Sincerely, Monique Walker RE/MAX Excalibur Phoenix, AZ Mobile: (602) 413-8195   Monique@MoniqueSells.com Monique Walker RE/MAX Excalibur 8510 E. Shea #100 Scottsdale, AZ 85260 Manage your preferences | Unsubscribe View this email online.