VIDEO BLOG
The real estate market is really tight right now. There aren’t a lot of luxury homes for sale, so if you have clients who are looking to downsize or move, they might have trouble finding a place they love. That’s where a reverse contingency strategy can help.
In case you don’t know, this works by letting all your potential buyers know that the sale is contingent on your clients finding a new home. Essentially, this is the opposite of a typical closing contingency.
I recommend speaking with your lending partner to work on the specific wording, but this strategy has paid off big for many luxury agents recently. It’s a great excuse to send out “I have a buyer” ads and mailers to your neighborhood. Not only could you find a great buyer for your clients, but you could also raise your profile and build your database.
A reverse contingency comes with a log of risk for your buyer, so I recommend putting a clause into your contract that says your client will reimburse them for any inspections they paid for during the closing process. This way, your potential buyers will have more peace of mind as they go through with their purchases.
If you have questions about this topic or anything else, please call or email me. I am always willing to help!
