How Contingent Home Sales and Contingency Home Purchases Work
The real estate market is HOT, HOT, HOT… here’s how you can benefit from it!
I have noticed a trend in real estate you may not yet be aware of and I wanted to share it with you. Many folks are using the current real estate market to trade up to a larger home or to downsize as empty nesters or simply for less maintenance.
Families are taking advantage of this incredibly hot market and historically low mortgage interest rates to benefit themselves and their families needs.
Maybe you have considered it? But like a lot of people you may have concerns your home might sell too quickly, rendering you homeless… Or that you may not be able to find a satisfactory replacement home quickly enough? Did you know, with proper negotiation, at time of accepting an offer, you can make sure you don’t end up forced to sell your home but, sell your home “only if” you find a new replacement home you love?
Typically, in California, real estate sales contracts don't provide/allow sellers a “contingency to cancel” or the “ability to back out of selling their home” after accepting a buyer’s offer. Many agents are not aware of how to strategize and protect you, making sure you have total control on both your sale and your purchase, I do, and have done so for many happy clients just like you.
Today, because inventory is low, and buyer demand is strong, as a seller you can negotiate to take back what is called a “seller contingency” to find a replacement property, yes buyers are willing to wait when properly negotiated.
We list your house on the market for sale, advertise it, promote it, show it, solicit offers, and then while accepting an offer, negotiate a “seller contingency”...or in other words a “seller right to cancel the sale” should you not be able to find a replacement property that you love. Awesome!
Next step, we start shopping for a new home for you, and when you make an offer on the new home we make your offer “contingent upon the successful sale” of the house you own now. This further protects you from any loss or obligation to buy or sell if your current home doesn't close escrow for any reason, or you simply change your mind, you’re protected on all ends.
It's really an incredible opportunity this market provides considering homes sell so quickly and values are so strong, sales are smooth, you get to move quickly and your family benefits!
When you’re trading up, or downsizing, you are essentially moving your current equity from one property to another, keeping you invested in the market, so nothing really changes other than you get to live in the home you desire and benefits your family needs the most now.
Trading up or downsizing both make sense when the markets are hot and real estate interest rates are still low. You are able to sell and receive the highest possible price, in the least amount of time, with the least amount of inconvenience. Would this be of interest to you?
By the way, if you've owned your existing home for many years and are very happy with your low property tax bill, did you know if you are over the age of 55 you have a one time option and can move your property tax basis from your current home to your new home keeping your yearly property tax payment the same?
If you are considering buying or selling anytime in the next 6 to 12 months let’s schedule a time to meet - just give me a call or send me a text, I will only need about 15 minutes of your time and then you can judge for yourself.
Tom Lichtenberg, Realtor
Keller Williams Realty
9250 Laguna Springs Dr #100
Elk Grove CA 95758
(916) 801-1963 Direct
CA BRE #01349395