Tips to help you buy your dream home contingent on selling your old house.
Today, I’d like to delve into a common challenge many people face: buying a new home while trying to sell their current one. Writing an offer that’s accepted, with a contingency to sell your present home, can be a complex task. Understandably, it’s daunting for sellers too. They need to align with your plan to buy their property while knowing you also have a house to sell. This effectively doubles the complications in the buying or selling process. Here are three key points to consider when navigating this scenario:
1. Bring advantageous terms for the seller. In a seller’s market, or even a neutral market, sellers favor offers that benefit them equally or more than the buyer. You need to make the agreement as balanced as possible, considering the seller might not always see the benefit of waiting for you to sell your home. It could be a flexible closing period that suits them or other terms they prioritize beyond price.
“Increasing your earnest deposit could be a persuasive move.”
2. Offer a fair market price. As a buyer with a contingency to sell, offering a fair market price is crucial. In my experience, it’s common for sellers to expect a higher price in return for the risk and inconvenience of dealing with your contingency. Additionally, increasing your earnest deposit could be a persuasive move. This deposit, usually around 1%, is given by the buyer when making an offer. By increasing it to 2% or 3%, you can demonstrate your commitment and seriousness to the seller.
3. Work with an experienced real estate agent. The process of buying a home with a contingency is quite complicated. You’re dealing with the intricacies of two sales, which significantly increases the risk and work involved. An experienced agent can manage the many moving parts, ensuring that inspections, closings, and other critical tasks are timed correctly and efficiently.
To sum up, buying a new home while selling your current one can be a complex process, but with the right approach and professional guidance, it’s achievable. Don’t hesitate to call or email us if you’re facing this situation. We’ve helped thousands navigate similar paths successfully and we’d be delighted to assist you.