I like the home listed, but I need to sell mine. What about those contingencies?

I have recently received several inquiries regarding contingencies.  It’s the age-old question in real estate.  And no matter what’s happening with the market, it always seems to be the same.

“I like the home listed for sale, but don’t want to put mine on the market unless I know I’m under contract for the new one.”

Well, no matter what’s going on with the real estate market, most sellers won’t accept a contingency unless your existing home is actually under contract.  Put yourself in their shoes…..When you go to sell your existing home, would you want to take it off the market for several months or so hoping that the buyer gets their home sold?  and what if it doesn’t, then you’ve just missed all that time on the market to find another buyer!

Some of the bank owned or foreclosure properties will not accept a contingency, period.  And depending on if you are competing with other offers, will depend on how the seller will view your offer.

I understand.  It’s a bit of a catch 22.  When you have an existing home to sell in order to purchase another, you will have to consider several options.  Either moving twice, or waiting until your home is under contract and THEN finding your next home.  In some cases, you may be able to do what is called “bridge financing”, but need great credit in order to do so.  It may seem like a risk, but right now there’s still plenty of inventory, and homes on the market are priced right or even aggressively.  If you have a great agent who can move quickly and work both contracts effectively, you should be able to find your next great home.

If you are thinking of a move, and have a home to sell, then here’s my advice.  First of all, get yourself a GREAT agent. Not get an agent, but get a GREAT agent.  You are going to need a mover and a shaker, since you will be purchasing your next home with a contingency.  Get an idea of what you can pull from the existing home sale, and what proceeds you would have for your next home.  Then call a great lender.  Make sure you can get financing on the next house.  Then if all the puzzle pieces fit, put your home on the market!  I am more than happy to discuss in detail, just call me!  303-324-5731

Happy Summer!

Lori