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- Secure a REALTOR® first
- Get a realistic valuation on a selling price for your home
- Go to a lender you trust
- Have the lender look over your finances and the valuation
- See if you can be pre-qualified
- No big purchases. PERIOD!
- Put your house on the market
- Follow the advice of your REALTOR® and lender
Virginia Beach, VA
I recently did just that! My buyer's offer was contingent on her selling her home. Here's how this went. I had been showing my client property for few months. She was moving back to my area, the Palm Springs Desert in California, and she wanted to make sure she was making the right decision. She really liked one particular property, but she was dragging her heals getting her home listed. One day she called, all upset, saying "My condo is gone!" Sure enough, it had expired. I called the agent and asked if she was going to re-list it. She said "No," the Seller wanted to give the listing a rest. I proposed she tell the seller she had a VERBAL offer, and the buyer needed to sell her condo first. If they accepted our offer and we went into escrow, he had nothing to lose since he was already off the market. I was told by the buyer's agent (in a different city) that her home would sell quickly. After negotiating verbally, we came to a deal. The sellers agreed, we went into escrow, the buyers home did sell quickly, and we closed a few weeks ago! Sometimes it's good to "think outside the box!"
Virginia Beach, VA
First, hire an agent who knows what they are doing. It can be done but sellers need to understand that unless they have the funds to close and can carry both homes they need to sell first. Otherwise make sure that all contingencies are removed on their existing home and on a case by case basis we might be able to put the transaction together but it's likely a non- contingent offer will come in first.
put the home on the market, and be prepared for temporary housing if you can't find the right property to buy....
Sterling Heights, MI
1. List your home with a realistic price.
2. Have a back up plan for somewhere to live between transactions. In our current market with low inventory levels, Sellers are hesitatant to take offers contingent on selling of a home.
3. Don't make any major purchases!
I've tried buying property by using my good looks as a Down Payment. Surprisingly, there haven't been any takers yet!
Just explain they really need to sell before they buy. And the fact that a home won't sell if it's not on the real estate market.
John McCormack, CRS
Complete the sale to be in the best position as a buyer. A contingent offer is a tough equation in this brisk spring market. Have a "plan B" for temporary housing in place so that you are not attempting to complete two transactions with absolute precision - rarely works out well.
Be realistic. Probably should not make offers on other homes until you are in contract. Other sellers will want to see your contract before taking a contingent offer so make sure it is solid.
In our market, I would tell them to put the house on the market and be prepared to go live with Mama. And you better like Mama, because as hot as this market is, you could be there a while. Sad but true.
Sell before you buy !
(Might be able to make an offer as soon as you have your property under contract.)
Make sure the property is cleaned, spartan like, deferred maintenance corrected and of course, most important = priced right.
Sharon Altier, SFR
They need to make sure they have a place to live between transactions. It is a good time to get rid of clutter before the move.
have a backup plan. Also your offer may not be as strong as another so make sure the home you have to sell is priced right and buttoned up, you need it gone to get that other home.
Just Do It.
Sheri nailed this one!
Some Seller Clients you just have to allow them to experience touring homes that go under contract before they procure a Buyer for their home. Some just need to tour home anyway to build their faith there is an inventory out their meeting their needs. You got some very good technical advice in the other posts.
"Do you really want 2 mortgages, 2 HOA bills, 2 taxes etc for possibly years to come". You'll probably lose the first one due to excessive bills and have to stay in the original.
Be prepared to move to someplace temporarily if your house sells quickly. Make sure you work with an agent who knows your neighborhood. Get preapproved.
Be realistic when it comes to expectations of your next home. If you sell your current home and then look for that elusive perfect unicorn, you will be homeless.
Don't think the Realtor is only looking for a commission check and not thinking of your needs and wants. All the other suggestions can not be considered if you are scared of being approached by a sales person.
Many Rainers with sound advice, so not to be redundant, I'll just leave it at that.
It's important to have a Plan B that includes leasing.
Seattle is one of the hottest real estate markets in the country!
Sellers here, frequently are telling me that they will NOT list their home until they find one they could move into. This forces a dual payment for a short while. That is why I have my client speak with the lender of choice to secure bridge or other interim financing so the pressure is off.
This then, allows my seller to move into the new place, sort out any issues at the old house, get the painting and other prep work done and then come on the market in great condition. The challenge is FINDING a place first!
We are frequently in multiple offer situations, so "low offer" for me doesn't usually come into play. "Low" might be the list price. If someone needs financing, they are frequently trumped by those coming here from other states (such as California) or out of country (middle east or asia) and who can purchase all cash - often competing cash offers with escalator clauses ta-boot!
I appreciate everyone's input on this topic. I always learn a lot from the collective wisdom and wealth of experience reflected here. Happy weekend....
Rita Harris, Broker
WP & Assoc. - Seattle, WA
All of the above, plus, unless you love feeling stressed and are willing to lose negotiation power on both transactions, don't shop for a new house until all buyer contingencies are relased on your old house.
The advice to secure a Realtor first, that has demonstrated experience with more complex transactions is critical! Communication with all the parties in the transaction is essential and the lender needs to have a team that has control of the entire loan process within their branch operation. That means from orignation to funding. This allows for meeting the timelines required should a concurrent (same day) closing be part of the transaction.
Make sure their own financing is in order.
Be patient, trust your realtor. You will be better off in the long run.
List the property and then if they find another, put a contingency on the contract that they can't close until their house closes. Or sell the home and move in with a friend or relative until you find another
Letting these buyers know that they may need to ask their buyer to give them either a temporary lease back or delay closing until they find a home is a good approach. This is the most feasible situation for all parties. Most buyers will be okay with this if you let them know upfront.
I tell them to make arrangements with someone to live with for a short time in case we can't find somethig for them to buy right away.
A lot of things already mention to include keep your credit in check.