Can You Buy A House Before You Sell

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

 

While talking with clients, who bought a house from me twenty-five years ago, they mentioned it is time to look for a new property. 

 

 

Can they move forward without the proceeds of their current home?

Since there is not a lot of inventory,  the home you love and that meets your specs, is probably not going to wait for you.

 

It is not unusual to have a client want to see every home available right now, and they have not even considered putting their home on the market. 

Their fear, what if I sell and have no place to move? 

 

When two separate moves are just not possible, my advice is to list the property, contingent on "finding a home of choice." You may see HOC in remarks.

 

 

Reverse contingency

 

Let's call it a reverse contingency.  When an offer comes in, a clause is in the contract stating a contingency for a short amount of time for the seller to find their "home of choice." 

Once the home is listed, viewing available properties is appropriate so the seller/buyer can become familiar with the available inventory.

When the current home goes under contract, the buyer can write a contingency offer on the new home contingent on the settlement of the present house. Did you follow that?  There are so many ways to help buyers and sellers. First, you must ask the right questions and find out the buyers and the seller's needs.

This transaction is not for an inexperienced agent. Timing is critical and needs to work out for all parties.

Have you ever done a reverse contingency?

 

 Margaret Rome

 

 

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Topic:
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Location:
Maryland Baltimore County
Groups:
Cosmic Cow Pie...The Rome Way
Bartender, Make it a Double
Old Farts Club
Tags:
homerome
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buy first sell first
reverse contingency

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Rainmaker
3,187,260
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Margaret.

I've only seen it two times, in fact we have one under contract with just that detail.

Jan 30, 2020 01:23 AM #3
Rainmaker
5,354,944
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Margaret Rome, Baltimore Maryland that's the only work-around for those who need to sell to have proceeds to buy and make one move! we have one we are dealing with.... it's subject to securing a home....there are so many people searching for a home, someone will sign a purchase and sales on theirs and wait until they secure their next home.... 

Jan 30, 2020 04:50 AM #4
Rainmaker
3,589,061
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Margaret. Never heard the term "reverse contingency" used although I have used the clause several times over the years. Enjoy your day!

Jan 30, 2020 04:53 AM #5
Rainmaker
3,646,534
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Margaret - moving requires thought, proper preparation and conversation with the right real estate representative in order to make that happen.  In the Baltimore area you offer the advice and plan that will work best for each situation. 

Jan 30, 2020 05:08 AM #6
Rainmaker
1,257,038
Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

A speaker is coming to our office next week to teach us about a product offered through the lender he works for - bridge loans.  This would be another alternative to a reverse contingency.

Jan 30, 2020 06:50 AM #7
Rainmaker
2,161,729
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Margaret Rome, Baltimore Maryland - in today's market this is a reasonable choice.  If homes were not selling it would be a different situation.

Jan 30, 2020 08:14 AM #8
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

James Dray Would love to hear the details as long as you, of course, maintain confidentiality.

Jan 30, 2020 12:53 PM #9
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Barbara Todaro It is a good workaround and it gets their home on the market with a bit less stress. And, as you say, there are buyers who will wait.

Jan 30, 2020 12:55 PM #10
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Wayne Martin, I may have made up the term to describe this type of contingency I've been using for years.

Jan 30, 2020 12:57 PM #11
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Michael Jacobs, Thank you!  I always enjoy reading your comments!

Jan 30, 2020 12:58 PM #12
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417 A bridge loan or a home equity line could be another contingency. But then you still own two homes. Thanks for taking my call and letting me know some of the rules in Texas.

Jan 30, 2020 01:00 PM #13
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Grant Schneider It is one of the only ways in this market. Especially IF you NEED the proceeds to move forward.

Jan 30, 2020 01:02 PM #14
Rainmaker
2,746,434
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I have used that method of selling a house while buying a house as well.  A lot depends on how the market is doing.  Currently, here in Sacramento, inventory is very low, and buyer competition is brisk.  Many times in multiple offer situations, sellers choose offers from buyers who request no contingencies.  I have also had clients who used bridge loans in markets like we are currently in.

Jan 30, 2020 01:29 PM #15
Rainmaker
2,746,434
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

CONGRATULATIONS Margaret, on having this blog FEATURED in the Old Farts Club group!  

Jan 30, 2020 01:30 PM #16
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Myrl Jeffcoat It is always good to have options depending on the client's needs and this is one. Thanks for the feature in OFC!!

Jan 30, 2020 05:08 PM #17
Rainmaker
816,302
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Great advice for anyone who owns a home and would like to sell it and buy a new one without having to move out first. I don't know about your area, but in our area homes are still selling very quickly, so when you find one you like, you have to be ready to make an offer on it.

Jan 30, 2020 09:47 PM #18
Ambassador
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Troy Erickson AZ Realtor (602) 295-6807 You have to have a bit of luck when doing this and find someone who is selling but is not in a hurry to move.

Jan 31, 2020 09:46 AM #19
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