With there being such a low inventory of homes to choose from today, buyers are experiencing multiple offers on close to 50% of the homes today. Well-priced homes are very competitive. So with that in mind, we are advising our clients not to do anything that might weaken their offer. It should stand out to the seller as the obvious choice. Sale contingencies significantly weaken a buyer's offer and should only be used as a last resort. Great question, Kevin.
I can go over the options you have available to you today if you haven't done something already. I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify for better rates and terms. Although, with a minimum 580 fico score up to $417k, rates are still below 4% on 30 yr fixed FHA rates. You may still utilize this loan program between $417k and up to $729,750 with a minimum 600 fico score to qualify for Jumbo. I only need to ask a few dozen questions to give you what options you have available to you today.
Here is a link, flyer, maximum income limits and a needs list to gather for processing a loan approval. Let me know if I can be of any assistance. I have options that may work for your situation.
CHF Access half percent down flyer, pdf
Sheryl Arndt, standard needs list checked, pdf
CHF Access income limits http://tinyurl.com/8lzf8he
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience
The best strategy is to get your property sold first and then begin to look for another home. Negotiate the longest escrow you can, possibly ask the buyer for the right to rent back after the close of escrow for a predetermined time and then start looking diligently for your next home. Good Luck.
We typically recommend that our contingent buyers first list their home. Once we are in escrow, we will have a (slightly) better chance negotiating a good price and get their offer accepted. Sometimes, it may make sense to offer slightly higher because of the contingency.
Best of luck to you!
Kevin McLaughlin, Broker Owner
Berkshire West Realty
Since you are also a local Realtor, what has your experience been with home sale contingencies?
I would advise you get your home on the market...at the very least...before house hunting!
I also recommend to my clients to put their current home on the market, and once you are in escrow you may decide to make an offer contingent on the close of your current escrow. Although this is still a riskier offer for a seller to accept, the fact that you are in escrow may be enough for the seller to consider it, but you would still be in a competitive disadvantage to other "cleaner" offers that do not have a sales contingency.
For other information about buying or selling your home, see my award winning website at http://www.maureenmegowan.com
That's an excellent question and one we often get asked today. The answer is that it's a competitive market for home buyers right now with the number of homes, especially in the South Bay, at record lows. My partner and I strongly recommend to our clients that they first put their home on the market before looking for their next home. We were recently featured in this timely article on helping buyers get the winning bid in today's tight housing market. Check it out and please know we're here if you need any help.