This is a frequently asked question that has a different answer based on the financial situation and the flexibility of the person(s) asking the question.

This scenario works real well if you can carry two mortgages until your property sells. It also works great if you can buy your home and utilize your current property as an Income Property without having to sell it immediately. Your tax accountant should be consulted, if you are considering converting your primary residence to an income property, to determine any future tax liabilities. If you don't have the luxury of being able to maintain two mortgages while you are attempting to sell your residence, then the following options exist: 1. Write a contract where the seller takes the property off the market and the sale is contingent upon the sale of your home. This is not a good position for the seller, but great for the buyer. Most sellers reject this type of contract because the home is taken off the market with no guarantee of sale. 2. Write a different type of contingency contract where the seller can continue to actively market their property but still give the buyer first option at purchasing the home with all contingencies removed. This type of contract can be complex and create problems if it isn't administered properly. Please call us to outline how this contract would be written and how it is handled step by step through the contingency period. It is imperative, under scenario 1 or 2 above, that your home is either listed or going to be listed immediately. It is difficult to get a seller serious about a contingent on sale offer, when the buyer hasn't listed their property for sale. The seller doesn't know if the property is going to be marketed at fair market value, the average market time to sell the home, etc.

This method is the least risky from a financial viewpoint, but it can really put the pressure on the buy side. If you plan on renting on an interim basis until you buy your next home, then this would eliminate the pressure of having to find your new home under a time constraint. The downside is moving to temporary quarters while you find your new home. The risk can be minimized if you are actively looking and determining the areas/sub-divisions you would like to live in. If you start the buying process at the time you sell your home, it will be very difficult and pressure packed. This is not an enviable position to be in, we understand, we work with buyers everyday that have to make these difficult decisions. There are ways to achieve your goal of selling your current home without committing to buying a home. The proper use of contingency offers, and the methodical ways to remove the contingencies, will improve your chances of a simultaneous close on your current and new home and eliminate the need for temporary quarters. Please call us today and let us show you how the pros make contingency offers work for both the seller and the buyer. It is experience that counts, when presenting a contingency offer to both the agent and the seller. It can be a learning process for both.

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