. In a fast moving Sellers market one of the concerns that people have is...they could put their house on the market...upsizing or downsizing...or just moving for another reason...BUT....where will they go ? OR if they find the purrrrrfect house and have not closed on their house...but they have an offer...how does that all work when they write an offer ?
From a Sellers perspective ....what will they miss in terms of other offers IF they accept one with a home sale contingency ?
It is more important than ever in markets like this to be working with an experienced real estate agent AND a qualified lender to craft offers and arrange financing that is best suited to each unique situation.
Sooo...you have sold your house...but not closed and find the house that is your next happily ever after. You need the proceeds of your present home to purchase the new home....what is a Buyer to do ? As with any home search....go get a pre approval and explain and bring the offer to your lender. The agent who listed your home should have given you a "net" sheet...showing you what the proceeds would be from your home sale....inclusive of taxes, commissions, etc. You know the profit...you know what other funds you may be using from savings or investments if you choose, and can use as a down payment on the new house. The lender will calculate the amount for which you are pre approved and estimate your new mortgage payment given that interest rates are not likely to stay the same.
Now...you have your pre-qualification...which will read "contingent upon the successful closing of the present residence at ...your address."
You need to make the Sellers of your next "happily ever after" comfortable with your financial arrangement. At what stage are you with the sale ? Has your home passed inspection ? Has the appraisal been done ? How close are the Buyers for your home to receiving their "final financing approval" (In Wisconsin we call it Loan Commitment). Have the agent writing the offer furnish as many progressive details as possible and offer to share more as your sale progresses. their house to be your
Include a letter if you wish telling the Sellers how very much you want their house to be your next "happily ever after." We have gotten pictures of the family...including pets smiling back at Sellers, pulling ththe heart strings and adding a note of emotion...making the Sellers feel that the house they have called home will be well taken care of appreciated byy the Buyers. As a Buyer you have done all you can...with as much earnest money as you can deposit...to show the Sellers you are very serious about this purchase.
Sellers...What IF someone other buyer comes along while you are waiting for the first buyer to get an offer or have a successful closing on their home and you have accepted the "home sale contingent offer ?
Not a problem...in that offer..it likely had...or your Agent, Mr. /Mrs./Ms Seller has added what we call a "bump clause." This says if the Sellers DO receive an offer that does NOT have a home sale...they will give you X hours (typically 48) to remove that home sale contingency from your offer. There are a number of ways this can be done...but that is another post !
While the Sellers home is on the market with a contingent offer..it is still active in MLS and the listing agent makes any other agent interested in writing an offer, that there is a contingent offer in place. This requires them to write an offer in "Secondary Position" which will be elevated to a primary position if the contingent buyers cannot remove their home sale contingency in that limited time period.
'Sound complicated ? A little...but not for an experienced agent ! If you are in southeastern Wisconsin...Call Sally K. & David L. Hanson, 414 525 0563,,Broker Associates with EXP Realty and we will be honored to be of assistance for all things real estate.