Home Buying in Germantown>Question Details

Kathy, Both Buyer and Seller in Germantown, Philadel...

My husband & I own a home in W. Mt. Airy with excellent location. We want a bigger house in the same

Asked by Kathy, Germantown, Philadelphia, PA Mon Aug 24, 2009

neighborhod. Will we be able to purchase on contingency (e.g. in order to buy we must sell our house) or do we have to sell our house first?

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Most sellers do not want a contingent contract since they do not know how long it will take for you to sell your current home which puts them in a position of when they can move. Once the seller accepts a contingent offer the showing of their home tends to drop off. Your best bet is to get your house on the market and get it under contract and then start looking for a home. You can either have a rentback for a couple of months written into the contract or put a contingency for you to find a home in 30 to 60 days.

If you need the proceeds from your current home you will have to either get your home sold to get the proceeds or possibly do a bridge loan (check with your lender on this). Either way if you need your proceeds you need to get your house sold first.

The best seneario is to get your home sold (possibly move into temporary quarters). This makes you a much better purchaser on the house you want to by. You won't have any pressure to find a home and you will be able to make a better offer.
Ask yourself, would you be willing to accept a contract contingent on your buyer selling their current property?
0 votes Thank Flag Link Thu Aug 27, 2009
Kathy
You can certainly buy with a contingency to sell your home. The issue with that is whether person you are buying from will accept that type of agreement. It is a gamble on their part to accept that type of agreement. Usually there is a time period that you would extend. For Example... you would write up the agreement contingent on your home selling in 30-60 days and then if your home does not sell then you and the seller have the option to extend the dates or void the contract. Either way, your offer has to be pretty strong for the seller to accept that vs. an agreement that does not have this contingency attached to it. So you will have to pay pretty close to asking price or find a home that has been on the market for a while and so perhaps the seller is extremely motivated.

If you have any questions with regards to this please feel free to contact me. I work in this area and would love to help you if you have not found a realtor as yet.

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Carmel Archdekin
REALTOR
Coldwell Banker Preferred
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Philadelphia PA 19106
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0 votes Thank Flag Link Thu Aug 27, 2009
I meant Carol explained it well.
0 votes Thank Flag Link Tue Aug 25, 2009
Great question, I think Kathy explained it pretty well. I always like to see my clients list there home first prior to searching for homes, because it's a tough market out there and you home may need to be on the market to get it's full exposure and it could take several months. Your not only competing with homesellers your competing with distressed homes sellers and bank owned properties. You have to say to yourself am I the cheapest house and am I the prettiest in this beauty contest. Call or visit my website if I can be of service.
0 votes Thank Flag Link Tue Aug 25, 2009
Hello Kathy: Ideally, when you make an offer on a property, the fewer contingencies you have as a buyer, the stronger it makes your offer. However, depending on the motivation of the seller and perhaps lack of showing activity on the proeperty, the seller may entertain an offer with a sale contingency. Give me a call and I'd be happy to talk further about the process.


Carol McCann
Remax Millennium
267-970-3952
0 votes Thank Flag Link Mon Aug 24, 2009
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