Can you buy and sell a house at the same time? How do you navigate selling and buying a home at the same time? In this video, I discuss the topic of having a contingent offer and the best strategies to navigate buying a house contingent on selling yours.
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Buying and Selling a house at the same time is very common but can be a difficult situation to navigate. The first step in the process is to make sure you that you are working with a professional Realtor, someone that does this full time and can help you not only understand the process but can help guide you through it. Selling and buying a home at the same time can be risky if it’s not handled correctly so you want to make sure that you have the property verbiage in place to protect if so that you aren’t left homeless in the event that something happens with the home you are buying.
Whether you are making an offer on a house contingent on selling yours or plan on carrying both mortgages at the same time, you need to make sure that you have been pre-approved with a reputable mortgage lender. Just because you qualified for your current home doesn’t mean that you can qualify for another home so you need to make sure that you have been through the pre-approval process and have a lender verify all of your information so that you know you are in a position to purchase. I mention this a lot when buyers are buying their first home but the same is true for someone an upleg home, you need to verify that you are qualified to buy before ever putting your home on the market. This will also put you in the best position to make an offer on a new home when that new home presents itself.
What is a contingent offer?
A contingent offer is one where you are buying a house and have a house to sell at the same time. When an offer is contingent that means that the buyer would need to sell their current home in order to buy the other home
Can you put an offer on a house without your house being in escrow?
Let’s assume that you don’t qualify to carry both mortgages and need to sell your home in order to purchase your new home. With that said, Yes, you can put an offer on a new home without your home being in escrow but your offer will be a lot stronger if your home is in escrow. Most listing agents will want to know the property address, listing price, etc… so they can do their due diligence for their client to help them in giving advice in this case. By accepting an offer where the buyers home isn’t in escrow, the seller is essentially removing their home from the market for other buyers to make offers. Without the buyers home being in escrow, there is really no certainty on when the home will go into escrow or if it will ever sell. By showing that the home is in escrow, it gives the seller a better picture of timelines and gives the Seller more confidence in the outcome
Do I put my home on the market or find the home I want to purchase first?
Ideally, you start with meeting with a Professional Real Estate Agent to discuss your real estate goals. With that said, you realtor should recommend that you start by listing your home for sale before looking for your next home to purchase. There is nothing wrong with looking for your new home before having your home on the market but keep in mind that you are in no position to put an offer on a home without at least having your home on the market and the best case would be having your home already in escrow.
How do you protect yourself when making contingent offers?
When making an offer to buy a home contingent on selling yours you need to make sure that you have language in the contract to protect you if something happens with the buyer of your home or with the home you are purchasing. There is always a chance that the buyer on your home can’t fulfill their side of the contract so you need to make sure that you keep that contingency in place during the entire transaction and also you want to make sure that you have language in the contract with the buyer that gives you an opportunity to cancel the contract if your upleg falls through for any reason. That way you aren’t left in a position where you have to sell your home with no place to go.
Do you have questions about buying and selling a house at the same time? If so, comment below or contact me directly as I’d love the opportunity to help.
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Other videos you might find helpful:
RECESSION 2020 – Will there be a RECESSION in 2020? – https://youtu.be/g_8ACYv9Tg0
November 2019 Real Estate Market Update – https://youtu.be/3O89han-fUQ
#1 TIP to get the MOST MONEY for your HOME – https://youtu.be/lhvmQ34MOro
Steps to buying a house – https://youtu.be/6rZhC_2ET40
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