lower my price while in contingency?

**dars** · 10-29-2009, 12:15 PM

I posted this in Ask a Realtor but maybe this is the forum for it??

1. We are selling our house and received and accepted a contingency offer about a month ago. We do have the "continue to market" addition.
2. Since then, we found the perfect place and, smart or not, we offered and the seller accepted a contingency offer from us. They also have the "continue to market" addition.
3. The timing of the 2 contingencies are both until 12/31/2009.

We very much don't want to lose the house we have selected but I have some concerns about our buyer's house selling soon.

Questions -
1. Is it allowable and ethical for us to lower the price on our house in hopes of getting a non-contingent offer?
2. What is a realtor's ethical responsibility related to telling an agent that is requesting a showing that there is a contingent contract on the house (my concern is whether the agent selling the house we want is telling people this while continuing to market)

thanks!

**Greg** · 10-30-2009, 05:25 AM

I don't show houses with contingency contracts or houses listed as "under contract continue to show". With so much for sale there is no reason for my buyer to get tangled up with something that might not be available.

I also advise my sellers not to take contracts contingent on the buyer selling their house. This is a nothing contract and only serves to scare away buyers who are ready right now. Accepting a contingent contract is a move of desperation. Never look desperate in negotiations.

Your agent has to tell everyone there is a contract on the house. You can't be wasting the time of buyers who are working on a time frame.

You should definitely lower your price to try to get a real buyer for your house before the house of cards you built falls down.

**Dave Reynolds** · 09-12-2011, 10:09 AM

The ‘continue to market’ clause allows you the homeowner to market the property for the purpose of obtaining back-up offers. You and the buyer entered into a sales contract. If you accept a subsequent offer from another buyer you may be liable for damages to the original buyer. Partner with a real estate attorney to review the original contract and see if there is a way to refund the good faith deposit in order to cancel the contract.

Realtor’s have an ethical responsibility to disclose any information they may have about the property including contingent offers. If the realtor is not disclosing the necessary information they may be in breach of their fiduciary duties to the seller because they are in essence encouraging the seller to breach the original contract and accept the new offer. If this is in fact the case you can report the real estate agent to the licensing board.