The Domino Effect - Sellers, It Can Work!
By John Benson, Broker/Owner - Philadelphia Real Estate
(RE/MAX Home Experts )
I recently closed on a listing I had in Evesham Township, NJ and luckily had escaped what I call The Domino Effect. This is a phenom in real estate (okay, not quite a phenomenon but that adds to the effect) when one closing relies (or is contingent on) one or more other closings occurring. In my case, our closing depended on another house to close so the buyer had the funds from that property to purchase our listing. That buyer's house also needed another property to close, thus a domino effect is created. Of course, if either of the other properties failed to close, we could not close (a contingency in the agreement protects the buyer from default). So why did we take this offer if it was so risky? My client had an attorney (whom I recommended) who also asked question us accepting the...