Hey there, homebuyers! Are you dreaming of making a move to a new house but feeling held back by the need to sell your current one first? Well, fear not! As your trusted Edmonton real estate agent, I'm here to let you in on a little secret: buying a house contingent on selling yours is totally doable—and I'm here to show you how. So, grab a pen and paper, because we're about to embark on a journey to your dream home!
Understand Contingent Offers: First things first, let's talk about what it means to buy a house contingent on selling yours. A contingent offer is essentially an offer to purchase a new home that is contingent upon the sale of your current home. In other words, you're saying to the seller, "I'll buy your house, but only if I can sell mine first."
Get Pre-Approved: Before you start house hunting, it's important to get pre-approved for a mortgage. This will give you a clear understanding of how much house you can afford and demonstrate to sellers that you're a serious buyer. Plus, having a pre-approval letter in hand will strengthen your contingent offer and show sellers that you're financially capable of following through on the purchase.
Work with a Real Estate Agent: Partnering with an experienced real estate agent who specializes in contingent offers is key to navigating this process successfully. Your agent can help you find properties that are open to contingent offers, negotiate favorable terms, and guide you through the intricacies of buying and selling simultaneously.
Price Your Current Home Competitively: In order to make a strong contingent offer, it's important to have your current home priced competitively and ready to sell. Work with your real estate agent to determine the optimal listing price based on market conditions, comparable sales, and your own financial goals.
Include a Kick-Out Clause: A kick-out clause, also known as a "home sale contingency with kick-out," is a clause in the purchase agreement that allows the seller to continue marketing the property and accept other offers if certain conditions are not met within a specified timeframe. Including a kick-out clause in your contingent offer can provide peace of mind to the seller and increase the likelihood of your offer being accepted.
Negotiate a Longer Closing Timeline: Buying a house contingent on selling yours typically requires a longer closing timeline to allow for the sale of your current home. Work with your real estate agent to negotiate a closing timeline that aligns with your needs and gives you enough time to sell your house and complete the purchase of your new home.
Consider Bridge Financing: If you're unable to secure a contingent offer or need to move quickly, bridge financing may be an option to consider. Bridge financing is a short-term loan that allows you to purchase a new home before selling your current one. While bridge financing can be a useful tool, it's important to carefully weigh the risks and consult with your financial advisor before pursuing this option.
In conclusion, buying a house contingent on selling yours may seem like a daunting task, but with the right approach and guidance, it can be a smooth and successful process. By understanding contingent offers, getting pre-approved, working with a real estate agent, pricing your current home competitively, including a kick-out clause, negotiating a longer closing timeline, and considering bridge financing if needed, you can confidently navigate the path to your dream home. So, what are you waiting for? Let's make those dreams a reality!