You keep hearing that the San Diego market is super hot right now. You would love to sell your house in North Park and buy another. We have sold houses with these types of contingencies many times, but we must warn you; going through the process of simultaneously selling your house and buying another is not for the light-hearted. You will need to have lined up many things properly and have a great team working on your behalf to make this process as streamlined as possible and happen on time. If you don’t have everything in place as it should be, things can get very hectic, and this is not a situation you would want to experience. This can be very stressful for you and your family, but it can definitely be accomplished.
Choosing A Realtor
Which Realtor you choose to work with is essential. If your Realtor is not experienced, this can turn out to a huge
financial mess for you. Many contingencies will occur during this type of sale, and knowing what to look for and what to avoid is crucial. As a Realtor, we typically suggest selling your house first, then buy your next house. Of course, this is the cleanest way to purchase a house, but this is not how it works for most people who currently own a house in the real world. There are many things to consider if you decide to buy another house, and you have to sell the one you are currently living in.
Writing A Contingent Offer
If you decide to sell your home and buy another house simultaneously, there are a few things your Realtor should suggest that will help you achieve your final goal. First, before you put your house on the market, ask your Realtor to add you to an MLS home search in your desired area. See how many homes are coming on the market for sale every day and ask yourself if you can see yourself living in any of them. Track how long it takes for those houses to go “pending” (under contract). Just because we are in a hot market in San Diego does not mean that every single house is selling quickly. Sellers who have overpriced their homes will be the ones that stay on the market for a longer than usual time. This will not work out well for them but can benefit you in the long run.
The House Is Overpriced
If you see a house you like and know that it is overpriced because it has been sitting on the market, ask your Realtor to find out a little more about it. Your Realtor can find out if the sellers have received any offers previously and if they would consider a contingent offer. You may want to go ahead and submit an offer on the house. These are the homes you will have a better chance with the seller accepting your contingent offer. Remember, they priced their home way over what other houses are selling for. Potential buyers currently searching for homes know the house is overpriced. They are waiting on the sidelines to see when the seller drops their price.
Search for homes that have been on the market for over 30-45 days or longer. In San Diego, believe it or not, that is a long time in this market place. Remember, the sellers have been showing this house over and over. They have been keeping the house super tidy, making sure the kids keep their rooms clean and pick up after the dogs, cats, and any other pets they may have. When an appointment is made, they have to clean up and take the kids and dogs out for a walk every single time. Surely they are getting tired of the feedback saying, “we love the home, but it is overpriced.” They are exhausted right about now.
Time To Submit An Offer
If you like any of these houses, NOW is the time to put an offer in. Hurry, get that home before your competition does. The seller will be tired of the feedback, and your contingent offer will not look bad to them at this point. But, If you wait until the seller drops the price, all of the other interested buyers standing on the sidelines will come out of the woodwork, and your contingent offer will not look as desirable any longer. You are back to searching for other homes for sale.
How To Sell A House
At this point, you will have to put your house on the market for sale. Before a seller entertains your contingent offer, they want to see
that your home is on the market for sale. Their Realtor will check to see if your home is priced properly, where you will receive an offer quickly. If you already have an offer on your house, they will want to know how far along has the buyer on your house gotten with their inspections? Has the buyer already removed their inspection contingency? They will also want to check the purchase contract of the buyer who has an offer on your house. Do they have a house to sell as well, or is it a straightforward purchase?
If you’re Realtor is confident that your current home will receive offers and sell quickly, you can write an offer on your desired house with a longer closing date. Typically we see 30 days, but in your case, maybe you can ask to close in 45-50 days. If you offer the seller a higher dollar amount with the purchase price, they will typically accept the longer closing time, in our experience. At least this will give you a little extra time to sell your house and buy your new house with the equity proceeds that you have built-up from your current home.
My Offer Has Been Accepted
It is super exciting to get your offer accepted. Especially if you were able to put an offer in before the seller decided to lower the price. Not having to compete is always so much nicer than having to be involved in a bidding war. Bidding wars are always exciting when you are the seller, not necessarily when you are the buyer. Hopefully, you and your Realtor priced your home just right and were able to create multiple offers.
Now that your contingent offer has been accepted, you will have to move quickly and efficiently. Your lender should order the appraisal immediately; your inspections should be scheduled and completed right away. Hopefully, your negotiations after inspections go nicely; you are reasonable with the “request for repairs” that your Realtor submitted to the selling side. If so, the sellers will be ok if you have to come back and ask them for an extension. This, of course, may happen if the buyer on your side needs a little more time to remove all of their contingencies.
If you would like to learn more about selling your home and buying another one simultaneously, contact the McT Real Estate Group at 619-736-7003
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