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Buying Contingent
Simply, this means you have a house to sell and that you can not buy another
until you have sold yours. Or in other words; you are making an offer to a
seller subject to the sale of your home.
This is the least desirable situation you can be in as a buyer. It gives you
little or no negotiating room and offers you little or no clout as a buyer. Many
sellers will not even consider contingent offers because they do not want to
remove their home from the market while they wait in anticipation of your home
selling. After all, they do not know what condition your home is in, whether it
is priced to sell, or if it is in a desirable location. All key factors when
selling a home.
If you must sell your home in order to purchase a home and the majority of home
buyers must do exactly that, it is important that your home is already on the
market, and even better that you have a pending offer on it. Remember that it is
much easier to find the home of your choice than to sell yours. It is simple
mathematics. You are offering one style, one property and you must find a buyer
who wants exactly what you are offering. On the other hand you are able to view
many, many styles and properties, to choose which one is exactly right for you.
The other advantage is the closing date. Once your house has a pending offer,
you will know your closing date, so when you find your dream home, you simply
set the closing date for the following day or two and you will be able to cover
your closing costs and down payment from the sale of your home, eliminating the
need for a bridge loan. Remember that you must have the cash at your closing.
Bridge Loans! What are they and how do they work?
The other option that may be available to you is a bridge loan. This is a tool
used every day by contingent buyers. They are simple and easy and cost you
absolutely nothing unless you execute it. They can protect you in the event
another buyer tries to “bump you “. They basically loan you money against
your equity to cover the closing costs of your new purchase until your home
sell. Then you reimburse the lender with proceeds from your sale.
Windermere is the one of very few if not the only real estate companies in the
Pacific Northwest that offers “in house bridge loans”. There are certain
criteria that need to be met, but they are a valuable and inexpensive option for
you. If you will be a contingent buyer, lets talk about this option, so you will
be prepared.
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(509)
981-1001