Taking the FEAR out of a major Transition Move in Real Estate is not as hard as you might think!
As a seller and a buyer making a change in life, you can be protected, contractually by specific clauses in the listing, the sale and the buying contract to make a transition.
That means the three documents it will take to sell and buy a replacement property all have the same contingency to protect you, the seller and also the buyer in transition.
This IS possible... however... not every real estate agent is willing to work with contingencies so just because it is possible does not mean it can always work.
Join us for a LIVE video event below on Tuesday, May 3, 2016 at 11:00 am EDT, 10:00 am CDT, 9:00 am MDT and 8:00 am PDT
OR follow this link and click "yes" you are attending and receive notifications when the program starts.
Carra Riley CRS, CRB, GRI, SRES founder of the Transition Living Real Estate Team™ in the Denver Metro, Colorado area and Margaret Rome Broker/Owner of Home Rome Realty in the Baltimore, Maryland area, will have a lively discussion on how to make the sale of your home contingent upon the purchase or location of a replacement home with the closing and possession to coincide and be concurrent so you will NOT have to make a double move.
The discussion will include:
1. Moving on in real estate "Transition" with a "Contingency" plan
2. Taking the FEAR out of a transition with a contingency in both the listing and the sale contract. NO RISK
3. Sale is contingent upon finding a suitable replacement home AND closing and possession must be coincide and be concurrent or the contract is null and void.
4. Connecting the new "Transition" home purchase to the sale of the existing home in a contingency.
5. Creating amendments to the contract to accommodate the closing and possession needed of all parties.
Unique Real Estate market conditions will dictate what an agent can do with helping a buyer and seller thought a transition without a double move, using contingencies. Many times agents don't understand or want to put a seller in a position of dealing with a contingency so this option applies to what COULD happen.
Watch a California Seller share his experience of how he incorporated the contingency in his listing to protect him when purchasing in Arizona.
Sale: Listing a home contingent up finding a suitable replacement.
This is a tool that makes a seller who will be a buyer, feel safe and protection to make sure they have a replacement home. The property that needs to be sold, is listed contingent upon the seller finding a suitable replacement home. Closing and possession must coincide and be concurrent or the contract is null and void.
This type of transaction requires very careful timing in the contract for closing and possession. The seller of the replacement home needs to be either out on day of possession or is given a few days to vacate. Once you know what the seller of the replacement properties next step is, you can back into the dates for the buyer on the sale of the existing home to coordinate the timing.
Purchase: Contingent upon selling a buyers current home to purchase.
Very normal contingency for sale of property in a slower market. The seller accepts a buyers offer "contingent" up on the buyer selling their home within a certain amount of time. 30 days could be negotiated and then amended if the listed home did not receive any offers to "kick out" this buyer offer. The time frame in the original offer is usually 48-72 hours for buyer to document they have the ability to close as agreed on a specific day if a new offer comes in the seller wishes to accept. If the buyer cannot document they can close as agreed then the offer is null and void and the earnest money is returned and the new offer can be accepted by the seller.
Colorado has a Possession After Closing document that identifies who is paying insurance and the daily rate for the delay in possession. It is a very helpful tool for people in "transition" that have the fear of moving dots not connecting.
Most of the time it makes better logistical sense to search for a replacement property once the existing property to be sold has a contract with a pre-approved buyer. When this happens a seller on the replacement property will feel assured that the closings will happen when each buyer has been pre-approved for the purchases.
It takes a knowledgeable real estate agent that can work with others to coordinate this type of transaction.
Pre-planning for a major transition is so important to your mental well being. One to five years out is not unreasonable in expectations to help alleviate the anxiety when the time comes.
The FEAR can be minimized with a major transition real estate move by using contingency clauses. Connecting with a real estate agent that is concerned with your "whole life" and how it all fits together will make a difference in the peace you can feel with any move.
Helpful Real Estate Transition Move Links: