Email UsDo you already own a home but want to buy a new one? Unfortunately, not everyone has the money to keep two homes and pay both mortgages. Most people will have to sell their current property to have the funds to pay for the new house. However, two transactions can sometimes mean double the headache. If you’re in this position, what can you do to ensure a successful home purchase?
One option that you have is to include a home-sale contingency clause in your offer. This means you will only buy the new home if your current one sells. If it doesn’t, you are free to walk out of the purchase agreement. However, home-sale contingencies can make your offer less attractive to sellers because it introduces uncertainty, may cause delays, and has the potential to make the deal fall through.
“Working with an experienced agent can instill confidence in the seller that your home will sell on the market.”
To make your offer more appealing, consider presenting a competitive purchase price or better terms. You need to work to make your offer worth their while. You could cover some of the seller’s closing costs, or provide a larger earnest money deposit. By demonstrating your commitment to the transaction, you can help the seller feel more comfortable waiting for your home to sell.
Another solution to overcoming the challenges of a contingency that is often utilized, is to move forward with listing your home on the market for sale, and securing an acceptable offer that provides flexibility with the buyer taking possession of the property after closing. This often entails an extended closing date (something longer than 40 to 45 days), or an addendum to the contract that is known as the Seller’s Temporary Leaseback that grants the seller a specified amount of time to lease the home back form the new owner on a prorated daily amount to cover their new mortgage (in some cases this is offered for free, and the amount of time varies based on the buyer’s circumstances for moving). Although this can be tricky to navigate, an experienced agent will know how to put you in the best possible position to ensure a smooth transition through this part of the process. Additionally, the risk associated with a contingency offer is minimized in the eyes of the seller, as your home is already under contract and/or sold!
If you’re feeling uncertain about how to navigate the process, work with a real estate professional who has a proven track record of quickly selling homes. They can guide you through the complexities of a home-sale contingency and offer valuable advice on how to make a competitive offer. In addition, working with an experienced agent can help instill confidence in the seller that your home will sell on the market.
Buying a house contingent on selling yours can be a challenging experience, but with the right strategy and support, it can also be successful. For more tips on how you can confidently navigate this real estate move, call or email us. We would love to connect with you!
