Saturday, November 1, 2014 / by John Duncan
A contingency sale in short is when a person says, "I'll buy your house once I sell mine."
People move for various reasons of course and sometimes find themselves with a home to sell before they can complete the new purchase. If you find yourself in this position, here are some key points to keep in mind when considering making an offer on that new home that you're in love with.
This is my priority list of an offer being accepted when making a contingent offer.
1. Your house not on the market yet- Seller will not take it seriously.
2. Your house is just fresh on the market- Better, but barely.
3. Your house is on the market, is having showings, and maybe even an agent who has shown it twice to the same client. Getting warmer!
4. Your house is on the market and has an agreed upon offer- NOW we're talking!
5. Your house not only has the executed contract (agreed upon offer) but has had inspections, and any repairs have been negotiated. In other words, you're out of the "option" period. There's a pretty good chance of getting a seller here to sign off on that.
While I'd like to tell you that selling one home and buying the next is a cakewalk, I can't. With the new lending landscape these days and other recent challenges in this new world of real estate, there are a thousand things that can go wrong.
Carefully examine your own situation. How long is it taking to sell homes in your neighborhood? Do YOU have a contingency plan? Meaning, if your home sells but the seller of the one you want cannot close as quickly, do you have a place to go short term? Remember if your home sells and you are trying to make one move only, you'll be stuck with the current inventory of homes that are on the market.
If you're looking for that "last home" or the perfect home, consider renting an apartment short term to find that dream home. While this may not be ideal, it's only for a few months. It may be worth it to get what you want.
If you'd like to discuss this, be sure and give us a call to talk about options.