However, you have to sell your present home first in order to afford a new home. Many people fear not being able to find the perfect new home after selling their present home. So many people want to find a new home before trying to sell their present home. Unfortunately, most sellers won't sell to a contingent buyer who needs to sell their home before they can afford to buy a new home when they are multiple ready-to-go buyers. The dilemma is who knows how long it could take you to sell your present home, delaying the purchase of your new home.
- For those downsizing, one of the most difficult things is to downsize your belongings to fit in a smaller home. This could take months, but needs to be done prior to putting your home on the market. Once you are in escrow, you need to be prepared to move.
- Next, you must get a loan preapproval to buy a new home.
- Then you must sell your home and get into escrow with a strong, motivated buyer with the means to buy your home.
- In the listing and purchase agreement counter offers, you must include that you have a Seller's Contingency for Buying a Replacement Property until you have released all of your contingencies, including inspections, loan, and appraisal on the replacement home.
- Plan a 60 day escrow versus the standard 30 day escrow for your present home sale. You will also need to remain in possession of your present house for 3 days after close of escrow, so that the proceeds can transfer from one sale to the next.
- You will also want to request that the buyers of your home have an appraisal ordered within 48 hrs, release their physical inspections contingency within 10 days, and release their loan & appraisal contingencies within 17 days.
- If your buyer is on track to remove all contingencies by day 17, then you can begin looking for a new home on day 14. Once all of your buyer's contingencies are removed by day 17, if your buyer backs out, then they would lose their good faith deposit. The purchase home seller will know that your buyer is solid at this point.
- Plan to close consecutively. Your present home would close. The proceeds from your sale would be wired to the purchase property the next day. Escrows will work out the details for you. You could start moving in the day the new home closes. So it is very important to be organized. Clean as you box up your belongings.
While it is challenging, it can be done. Using an experienced agent and organization are key. For more buying and selling tips see www.VirginiaHall.com.
Written by Virginia Hall
Keller Williams Realty