Four tips for buyer-sellers who need to make a contingent offer.
Selling a home and buying a new one is a common scenario many homeowners face at some point in their lives. However, not everyone has the financial means to maintain two homes and pay two mortgages. In most cases, people have to sell their current property to finance the purchase of a new one. But what happens if you need to make an offer on a new home before selling your old one? This is where a home sale contingency comes into play. A contingency offer is an offer that is contingent on the sale of your old home. Here are some tips to ensure that your offer is accepted:
1. Offer competitive terms. Contingent offers are typically viewed as less attractive by home sellers. To combat this, work with your real estate agent to offer competitive terms. For example, you can offer a quick closing period or shorten the inspection period. If you can give the seller what they want, they may be more willing to accept a contingent offer.
2. Offer a competitive price. Another way to make your offer more appealing is to offer a competitive price. If you don’t want to pay over this price, you can 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.
3. Work with a real estate professional. If you’re feeling uncertain about navigating the process, work with a real estate professional with 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 a real estate professional can help instill confidence in the seller that your home will sell on the market.
4. Consider buy-before-you-sell products. Certain buy-before-you-sell products in the mortgage market are becoming more and more popular all the time, and they are worth a look. These products allow you to buy a new home before selling your old one by using the equity in your current home as collateral. However, be sure to consult with your lender and real estate agent before pursuing this option.
If you have any questions or concerns about the home sale contingency process, don’t hesitate to reach out to us by phone or email for guidance.