Home sale contingency

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Home sale contingency

Ralph Ace
Real Estate Agent · Chicago, IL · Member since 2020 · 43 posts · 10 votes

In today's competitive market where folks purchase homes with no contingencies with cash a lot of times.

How hard is it when you are working with a client that will have home to sell contingency.

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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
4y

It's not how hard is it, it's impossible. The only way to make these even plausible is to list the home they live in, accept an offer, and get out of inspections and get the buyer's mortgage commitment. Then, when you make a contingent offer, all of the contingencies in your sale contract are met. The other option for sellers that we use is list, sell, close, and then send them to an Airbnb for a 60-90 day booking (they pay) to start while they aggressively look. A buyer looking with a home to sell contingency is about the weakest buyer on the market.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    Zero chance of that person buying an on market property in my entire metro area.

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    4y

    It's not how hard is it, it's impossible. The only way to make these even plausible is to list the home they live in, accept an offer, and get out of inspections and get the buyer's mortgage commitment. Then, when you make a contingent offer, all of the contingencies in your sale contract are met. The other option for sellers that we use is list, sell, close, and then send them to an Airbnb for a 60-90 day booking (they pay) to start while they aggressively look. A buyer looking with a home to sell contingency is about the weakest buyer on the market.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    3Reply
  • Michael J.
    Real Estate Agent · Greenville, SC · Member since 2021 · 210 posts · 142 votes
    4y

    There are programs out there like Ribbon or Knock that offer some options to help out people who need to be able to compete on their offer but also have a home to sell.  I haven't personally used either of them with any of my clients so I can't speak to how they work exactly.  

    2Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    4y

    If they can manage it financially, might buy the new home with 60 day lease for the seller.

    That might give you time to get #1 closed.

    I would have #1 on the market first, potentially under contract, before you contact on #2.

    If that doesn't work and you buy first vs sell first, once you get the contract in place check back with the original seller to see if they would mind moving the closing date to accommodate the seller.  Might not be that big of a deal if you're giving them at 60 day lease.

    OpenDoor or ibuyer mentioned above might be an option.  We have a program at KW that can work for these situations.   You might also check with a saavy lender that could offer some kind of non-traditional financing....like HElOC on current home, borrow from 401k or retirement accounts...do a personal loan at a credit union or a bridge loan...then put permanent financing on the new home once they closed on the original home.

    1Reply
  • Dwayne Poster
    Investor · Van Isle · Member since 2021 · 455 posts · 226 votes
    4y

    Contingency on sale is a down market strategy. The environment doesn’t currently exist.

    1Reply
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