If you need to sell your condo in order to buy a house in Brookline, Newton and the Greater Boston area, you are not alone. With housing so expensive, not many can manage to keep both mortgages, or pay for the house without the proceeds from the condo.
A contingency to sell your home is a common way to protect you in this situation. You make an offer with a contingency on an accepted offer, purchase and sale, or closing of the condo you are selling.
Sounds like a plan, right? WRONG!
In today’s market you are competing with other buyers, and a contingency to sell a home is a great way to RUIN your chances of securing the property of your choice. Put your home-seller thinking cap for prospective for a moment.
An offer with a contingency to sell a home is a high risk offer. Regardless of the type of property to sell or how easily it will sell, it is far removed from the seller and the seller’s agent. Furthermore, such an offer is likely to have delays and it comes with too many unknowns. Why accept such an offer when there are better ones on the table, or will be coming?
It is worth it for the seller to wait for another offer while you work on selling your condo. From the seller’s point of view, you can come back after you sold and your offer will be accepted then. Why risk taking the home off market now?
So what do you do when selling a condo and buying a house in the Boston area, with our current market conditions?
1. HIRE AN AGENT who has done this several times and knows how to protect your interests while securing a property.
2. Work on selling first and prepare to buy quickly once you have a P&S in hand.
3. Sell first, with a flexible closing so you have time to find your new home.
4. Work with your agent and mortgage broker. You may be able to take a bit of risk and make an offer without selling and without a contingency. Learn all the facts and how it may work.
5. Present an offer with a very long closing giving you time to sell the condo first
The bottom line is that you will have to stay flexible. You may or may not have to take financial risk – it depends on the properties, finances and closing dates. Most importantly, hire a real estate agent who knows how to work under pressure and protect your interests.
Feel free to schedule a free consultation to learn how to best manage your risk while buying and selling a home.