Today I’d like to answer a question from Elizabeth who recently asked about whether it would be possible to buy a new house when she needs to sell her current one to cover the down payment.
Because we’re in such a seller’s market right now, it’s common for people to be afraid of this situation. Though some buyers may be worried about including a contingent contract—one that makes the purchase of the new home contingent upon the sale of their current home—I’ve made contingent offers several times, and most of the time, they have worked out.
The best way to arrange this would be to find a property that has been sitting on the market for at least two weeks because, in our market, two weeks can be a long time for a seller. If you find a property in this situation that you like, your next step would be to get together with your agent and determine where to price your offer.
I would suggest that you offer the seller’s full asking price, but make the offer contingent on the sale of your current home. After this, you’ll sign a listing agreement which will show that you’re ready to list your house on the market, show the seller the comparable sales for your neighborhood so that they are assured that your house will sell quickly, and finally, show off your agent’s home selling statistics.
If a seller whose home has been sitting on the market for a while receives an offer like yours, which guarantees them their asking price and proves that your home will sell quickly, they’re much more likely to accept it, despite the contingency contract.
If you have any other questions about buying and selling simultaneously or anything else related to Cleveland Park real estate, give me a call or send me an email. I’d be happy to help you!