| Back to Articles |
| Back to Articles |
I'm often told "we can't place our property on the market until we find the the property we want to buy." Unless your needs are extremely specialized, there is almost always a property on the market that will fit your needs.
If we assume you find the property you want to buy before marketing your present property, you must place a contingency in your offer to purchase. This contingency states your offer is subject to the sale of your present property. IF your contingency is accepted, the seller often adds their own contingency. The seller contingency generally says the seller has the right to continue to show the property to other qualified buyers while you try to sell your property. If and when the seller finds a buyer that has no property to sell, the seller can accept the new buyer's offer and give you 24hrs to remove your contingency. If you do not remove your contingency the seller can sell the property to the buyer that has no property to sell. Make sense?
I generally advise sellers NOT to accept 'subject to contracts' particularly when the property that must sell is located out of town. If you find a seller that will accept a 'subject to contract', what have you really bought? If another buyer (without a property to sell) makes an offer that is accepted by the seller, you are given 24hrs to remove your contingency.
Wouldn't it be better to market your present property to an 'under contract' status? By under contract, I mean a status where all the legal documents are signed by all the parties involved. While your property is being marketed you can educate yourself to the availabilities of properties that meet or exceed your needs by touring them virtually online. The moment your property goes 'under contract' your negotiating position is strengthened. You may place an offer on the property of your choice. Your offer is not subject to the sale of your present property. It is only subject to its closing. The seller will perceive you as a more able buyer than one whose offer is subject to the sale of another property.
Marketing your present property to an 'under contract' status, then making an offer to purchase can save you money and avoid the emotional roller coaster of mentally moving into a property you may lose to a buyer who is better prepared. I'm not much for dancing but I know how to help you avoid getting your toes stepped on when doing the two step.
Whether you are thinking about buying or selling or merely seeking information, rely on me to provide accurate up to date information about the marketplace today.
Send me an e-mail message and ask to be added to my Real Estate Matters e-mail mailing list. Every two weeks, you'll receive a copy of my most recent issue automatically in your e-mail.
| Back to Articles |