Earlier this week I posted about home sale contingencies from a seller’s perspective. So let’s also talk about it from a buyer perspective.
When you have a house to sell before buying your next home what should you consider?
It’s easy to get overwhelmed so focus on one step at a time. The absolute first step and focus is on your current home.
Preparing your home for the market, hiring a listing agent and partnering with that agent for the prep phase.
Then, getting your current listed and active on the Charlotte real estate market.
(Notice we still haven’t jumped into choosing or offering on your next home yet, it’s not time for that yet!)
Once your current home is listed, you’ll be dealing with showings….since you’ve priced it well and prepared it for the market! Is it ok to look at homes and refine your search of where your next dream home might be? Absolutely! It IS also a good idea to get pre-approved for the next home. Is it time to make an offer? Not yet.
The next step: getting your current home under contract with a solid well qualified buyer (who ideally doesn’t have a house to sell!)
Now you have a timeline. You have an idea of when you’ll be closing the sale of your current home, you know when the due diligence deadline is on that contract, you’ll get an idea of when they’ll do the inspection and their financing can start moving forward (all info your listing agent will help you sort through and stay informed about)
NOW can you make an offer to buy the next home of your dreams? Yes, and you’d have a contingency on closing your current home’s contract. But now instead of just asking for a contingency on selling, it’s a contingency on closing a contract you already have! There is a difference.
So when you have a house to sell before upgrading to your next home….can you use a contingency on selling? Yes. When should that be used? AFTER your current home is under contract 🙂
***Side note – you cannot use a home sale/contract closing contingency on bank owned, distressed and usually relocation homes for sale. Can you use a home sale contingency to buy a bank owned home?***
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The content of this blog is the original content of Diane McDermott, NC Residential Real Estate Broker in south Charlotte NC