The answer is yes!
With our proven strategy of course.
Let’s take a look at the definition of contingent: “a future event or circumstance that is possible but cannot be predicted with certainty.” What is a contingent offer? This is an offer to purchase real estate, that requires the buyer to sell a property in order to perform on the purchase of another one.
Who does this apply to?
Any homeowner who has equity tied up in a property they want to use to purchase another; or one who cannot qualify for two mortgages at the same time. In practice, it is usually a combination of both. Take a current client for example: they have a property with $295,000 in equity and want to buy a larger home. They can’t qualify for the new purchase with their existing mortgage payment, nor do they have the income to make the payments on both if approved without buying the new purchase down by $295,000.
How does this work?
You need to have your home ready to be actively for sale, or in some rare cases in the process of getting it ready for sale. You write your purchase offer as if you have the net proceeds in hand, and add a form called Contingency for Sale of Buyer’s Property. This spells out details of your home- where it is listed, who it is in escrow with, and the timeline you have to remove this contingency to move toward a purchase. You also need to entice a seller into being amenable to accepting an offer that will take additional time and risk, and this can be done by an increase in purchase price that may be coupled with a removal of an appraisal contingency with the offer. If you have a lump of cash in hand, you can cover a minor difference in appraised value versus purchase price as a reward to the seller for accepting your offer.
What are my options?
Can we keep our home, or do we need to sell? It depends. How much equity do you have in your home right now? You have options, whether it be sell, rent, or refinance. Each individual transaction is different, and each scenario needs to have a carefully formed battle plan to win. We help our client’s achieve their goals with our proven strategies: from first time move up buyers, to million dollar owners who wanted multi million dollar property. 1850 Realty has even taken over an entire contingent sale and purchase from another broker, when they couldn’t execute on the client’s behalf.
If you are looking to make a move into a larger home, leverage equity to augment your real estate portfolio, or move down with your current tax basis, we can help craft a solution to help you achieve your goals. The real estate experts at 1850 Realty are here to help, contact us anytime: call (760) 814-1850 or email info@1850realty.com
