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Catch 22 Question...Do We Buy Or Sell First?

By Margaret Rome Baltimore 410-530-2400

Real Estate Broker/Owner with HomeRome Realty 410-530-2400 311291

January 02, 2011 01:15 AM

Hi Margaret Rome,

Please help us decide..."Do We buy or Sell First? We are thinking of moving but if we find a place we like, how can we make an offer if our home is not sold. We need the proceeds to move forward. If we sell our home first, how can we be sure the place we want will be available?

Buy or Sell HomeRome 410-530-2400

This seems like a "catch 22" question. Let me explain what I call a reverse contingency. We list your home contingent on "finding a home of YOUR choice".

How serious are you about not making that second move. What if someone comes along and offers you a million dollars? If your home is in the $500,000 category....you just might say OK, we will pack up, store our belongings, travel for awhile, move to an apartment, move in with parents or check into a hotel for that kind of incentive.

You may not want to be inconvenienced for any amount of money. This is the perfect timing for that "reverse contingency." When an offer is made on your present home, a specific contingency clause is inserted into the contract stating you have a short amount of time (could be weeks) in order to find a home of your choice...notice that wording. "home of choice".

Once your home is listed, we can start viewing properties. This way you can become familiar with the available inventory. I have several homes on the market with a HOC contingency.

When we get an offer on your current home and we go under contract, you can write a contingency offer on the new home contingent on settlement of the present home. Did you follow that? There are so many ways to help you sell or buy. Your needs come first. Hope this answers the question

“Do We Buy Or Sell First.''

Thank you for asking such a good question.

Re-Blog

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Dawn Crawley

Dawn Crawley Realty - Pinehurst, NC

Find Pinehurst Homes

Helpful information for buyers and sellers as to which way to start. Find a house first to buy or sell your house before you look to buy?

Jan 02, 2011 01:23 AM

Laura S. Baker

First Weber Inc - Lake Mills, WI

Realtor (920) 728-4118, First Weber Inc

I did wonder how that worked myself. I have never sold my own home, just flips so I have never been in this situation. I was concerned about having an offer placed with me with some kind of contingency like this, holding my flip up. How does that work? My Realtor® was not so good at explaining this to me.

Jan 02, 2011 01:52 AM

Pam Sitterly

RE/MAX VINTAGE - Magnolia, TX

CRS Magnolia-Tomball Texas

It is important the seller have his "exit strategy" in mind when he lists.

Jan 02, 2011 02:07 AM

Praful Thakkar

LAER Realty Partners - Burlington, MA

Metro Boston Homes For Sale

I remember listening to Floyd Wickman's CD on this - and how it could cost thousands of dollars if the client decide to buy first as opposed to sale.

Though my take is - it depends on client's situation.

I had one transaction last year (yes, in 2010!) that involved both - and we did get the buyer first and had flexible closing date for the purchase of the home in case there was a delay in closing of seller's home.

I liked 'HOC contingency'....

Jan 02, 2011 02:20 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Dawn, Thanks for stopping by, I enjoyed your last reblog post.

Laura, Really enjoyed speaking with you today. You are delightful.

Pam, It is a great idea to have an exit strategy.

Praful, Floyd Wickman is one of my mentors. Glad you like the HOC contingency. Good speaking with you this week.

Jan 02, 2011 03:12 AM

Lori Bowers

La Quinta, CA

The Lori Bowers Group

I usually have them sell first. Buying is not usually an issue as much as selling.

Jan 02, 2011 03:23 AM

Roseanne Campagna

John L. Scott RE Maple Valley, WA - Maple Valley, WA

Kent/DesMoines/Blk Diamond/Renton/Maple Valley, WA

Margaret,

I learned something new today! I didn't realize there was a reverse contingency option! It's is definitely worth knowing since many sellers are in the same situation. This will serve them well!

Thanks,

Roseanne

Jan 02, 2011 05:00 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Lori, That is the idea to have their home sold but you have to do what they are comfortable with.

Roseanne, Thanks for letting me know this was helpful.

Jan 02, 2011 07:21 AM

Jack Mossman - The Nines Team at Keller Williams in Stockton

The Nines Team At Keller Williams - Stockton, CA

The Nines Team at Keller Williams in Stockton

Margaret - Now that I see this again, I remember you explaining this "last year!" I just have to pull this into the front of my memory ... wait ... better yet, I'll add to my listing agreement template - then I won't forget and will just have to remove it if it is not an option required by the seller .... You're a genius!

Jan 02, 2011 07:50 AM

Joetta Fort

The DiGiorgio Group - Arvada, CO

Independent Broker, Homes Denver to Boulder

Great explanation of a complicated process. Understanding of these twists and turns is one more reason for home sellers and buyers to work with an experienced real estate agent.

Jan 02, 2011 08:46 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Jack, Glad this was helpful and thanks for your kind words.

Joetta, This is not the time to go FSBO...not in this market, for sure.

Jan 02, 2011 08:55 AM

Mary Yonkers

Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA

Erie/PA Real Estate Instructor

Margaret--unfortunately some buyers/sellers become so wrapped up in that question that they can't proceed one way or the other. Our job is to give them their options. The decision is theirs. Thanks for your final line. 'Thank you for asking such a good question.'

Jan 02, 2011 09:21 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Mary, I think we call it analysis paralysis. We need to be available to really "listen"

Jan 02, 2011 09:31 AM

Kate Elim

Dockside Realty - Spotsylvania, VA

Realtor 540-226-1964, Selling Homes & Land a

Hi Margaret...Perfect question and the perfect answer. A number of buyers and sellers find themselves in this situation and would love to have it explained to them this well.

Kate

Jan 02, 2011 01:52 PM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Kate, This is another way to help our buyers and sellers. Thanks for stopping by.

Jan 02, 2011 10:23 PM

Margaret Woda

Long & Foster Real Estate, Inc. - Crofton, MD

Maryland Real Estate & Military Relocation

Great answer, and a concise one, too. 'Gonna feature this in the new Q&A group. Yay!

Feb 02, 2011 03:44 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Margaret, I am going to check out your new group.

Feb 12, 2011 04:58 PM

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