Real Estate Watch – Cynthia Elizondo
A Better Way to Buy Contingent
If you are contemplating a move up or down in home size, or just a move across town, you have probably spent hours pouring over real estate websites, looking for “the perfect house.” Chances are, you have found one you love. And if you were truly interested, you may have even contacted your Realtor to put in an offer on it, saying that if the offer gets accepted, you will sell your current home. I get calls like this every week. And I am happy to write up that offer for my clients. Sadly, though, offers like this rarely get accepted, and my friends lose out on another “perfect” home.
The fact is, even in this shift towards a buyer’s market, sellers are still reluctant (if not adamantly opposed) to accepting any offers that require the buyer to sell their own property. In fact, as the number of days it currently takes to sell a home in Poway has risen to over 30 days, sellers know that means more time their own house will have to be off the market, and they are not willing to take that risk. And then, if your home sells for less than anticipated, the whole deal may fall through anyway.
But there is another option. You can sell contingent. The way this works is to put your current home on the market, wait for a buyer, then write it into the contract that you will not close escrow until you are able to find and purchase an acceptable replacement home. This allows you to get out of the contract if you are unable to find that perfect house. It also takes the guesswork out of the equation, since you know exactly what the sales price will be on your home. Then, sellers are more willing to accept your offer, since they know it is already in escrow.
The best part of doing things in this order is it puts the bargaining power in your hands. Since you are putting in a stronger offer on the new home, you can sometimes offer less money, and since you are not “desperate” to get your home sold, you don’t need to accept lower offers on your own home. You still end up with the perfect home, but you have more money in your pocket when the deals are done!
Ready to give it a try? Call me!
CalBRE #: 01924853
Halcyon Real Estate Services