Home Buying in Knoxville>Question Details

Ashley Merri…, Both Buyer and Seller in Knoxville, TN

Possible to make an offer before selling current home?

Asked by Ashley Merritt, Knoxville, TN Mon Nov 24, 2008

We haven't officially listed our condo. We just need to paint all the rooms...we're starting today! But, we've found several houses online that we're really interested in.
Can we look at them..I know some require pre-approval, in order to see...we can obtain that.
But, say we've had our condo on the market for awhile and then we find a house that's perfect...do we just see if the seller will make a deal with us on the contract, basically to hold the property until our's sells?

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This would be a contingency clause in your offer to purchase contract.

Some sellers will accept a contingent sale contract - but they will ask for a 24 hour first right of refusal clause. This means that if they retain the right to actively market the property and if they receive another offer that is able to close and is suitable to their terms they can come back to you and demand that you lift your contingency clause within 24 hours. If you are unable to do so, and the sller chooses they can then return your earnest money and release the contract they have with you in order to pursue contract with the other party.
Web Reference: http://www.RealtyRenee.com
0 votes Thank Flag Link Mon Nov 24, 2008
Ashley,

No it does not cost a larger sum of earnest money - earnest money is a negotiable amount.

Our TAR contracts have a section for special stipulations and the clause can simply be inserted there.

Best of luck - let me know if you need any further help.

Renee
Web Reference: http://www.RealtyRenee.com
1 vote Thank Flag Link Mon Nov 24, 2008
Ashley,
Yes you can make an offer with the contingency clause that you must sell your condo first, however, the seller may not accept those terms.
Try to think of it in the terms of you selling your condo - would you take the condo off the market to wait on the potential buyers to sell their home? What if they had interested buyers that also had to sell their home - it can create a domino effect and if one piece falls apart - they all do.
It is best to put your home on the market, priced appropriately to sell quickly and then consider making an offer on a property you love after your condo is scheduled to close.
Hope this helps - feel free to call or email if you have additional questions
Deanna Mendenhall-Miller
RE/MAX Preferred Properties
info@dmendenhallmiller.com
(865) 218-4371
1 vote Thank Flag Link Mon Nov 24, 2008
Hello Ashley,
Most Sellers will consider your offer more seriously when your house is on the Market. The Agent for the Seller will most likely do some research on your home, evaluate its marketability and advise their seller. Obviously if you have a contract on your property, it will make it a bonus for the seller to accept your contract. The first step would be to put your home on the market at a realistic price at pretty good value. I hope This Helps.

Andrew Pacillo Affiliate Broker
Century 21 The Real Estate Place
865-986-7577
865-773-2401
0 votes Thank Flag Link Tue Dec 16, 2008
Ashley, There's a lot of contracts out there right now with contingencies on them for the buyer to sell their home first. The biggest thing to remember is to make yours absolutely the best when listing. Painting is perfect. Make sure you de-clutter & de-personalize. Make it sparkling clean, price it right & be ready to show. Go check out some model homes in your price range & aim for that look. Right now price & move in ready cute are king. I offer a free hour of staging with my listings if this will help.
0 votes Thank Flag Link Wed Nov 26, 2008
You can certainly make the purchase offer contingent upon the sale of your condo, but I would recommend counseling with a REALTOR to see if your condo is likely to sell quickly. One scenario is that you sell your condo quickly, have to rent until you find your next house or complete negotiations on it. Another is that you put your condo on the market, make an offer to purchase your dream home, and are forced out of the running by a 3rd party, or you are forced to proceed to closing, still trying to sell your condo. You would then have either two mortgages, or have lost your chunk of Earnest Money. I would not try this in this new market. Make sure you hire a REALTOR to look out for your best interests.
0 votes Thank Flag Link Mon Nov 24, 2008
Most sellers will entertain an offer contingent on the sale of yours and may accept it but continue to show and market their home to other buyers ,generally if they get another offer you would then have a small window of time to remove the contingency 24 -72 hours are a good estimate if you cannot remove the contingency they move on to another that can close .. Earnest money is a negotiable item some sellers in this market when doing a contigency on the sale of another home and if they are not going to market it for a back up offer may ask for a considerable amount of non refundable earnest money. especially if they feel your home is either not professionally marketed ,yes that means listed with a Realtor or is considerably priced more than its closest competition. A sellers Realtor will show them any information obtainable on your home MLS ,NLS,Realtor.com etc in order for them to make an informed decision.

Margaret Rodgers Realtor,Broker,AHWDC
The Real Estate Market Inc
2911 Essary Rd Suite 100
Knoxville,TN 37918
865-696-8776 cellular
876-357-7070 office
margaretrodgers.com
tennesseerelocationguide.com
margaretrodgers.net
Web Reference: http://margaretrodgers.com
0 votes Thank Flag Link Mon Nov 24, 2008
is it going to require a larger sum of earnest money to have contract read - making the purchase contingent upon the sale of your property with a 24 hour first right of refusal clause?
0 votes Thank Flag Link Mon Nov 24, 2008
If you are ready to list your condo, then research and select a real estate agent that has experience in selling condos in your area. If you find a home that you really want to put an offer on, then put in an offer in that has a contingency clause that says you have to sell your condo before buying the home. If another offer comes in on the home that does not have a contingency clause, you will be notified that you have a specific amount of time ( ususally 3 days) to decide whether or not you can purchase this home even if your condo hasn't sold. If you have to sell your condo to buy then you will tell the selling agent that you cannot purchase this home and the contract is now null and void. Re the pre approval, contact a bank or mortgage broker, explain what you need and they will tell you how this is handled. Terry
0 votes Thank Flag Link Mon Nov 24, 2008
yes it is called "making the purchase contingent upon the sale of your property". usually the seller will give you a first right of refusal. What this means is that say if another offer comes in with no contingincies you will have 24 to 48hours to either remove the home sale contingincy and close on the home say within 30 days or you will be releaeed from the contract and the other buyer closes on the property.

In this market you will see alot of sellers willing to do this as something is better than nothing. You will need to get a pre approval letter for anything you look to make an offer on, so go ahead and get that. As far as selling your property, you should list with a leading broker in your area who will be able to assist you in getting a quicker sale at the best obtainable price.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Nov 24, 2008
Hi Ashley,
It is possible to make an offer on a property before yours is sold. Basically you include a clause in your offer that the purchase of your new home is contingent on the sale and funding of your current property. However, it is not a very strong offer. When I represent a seller I usually do not recommend the sellers take a contingent offer unless the prospective buyer's property is under contract and there is a closing date. I would advise you to get your current property on the market, with a Realtor, before you make any offers on what could be your new home.
Good Luck,
Trey Miller
0 votes Thank Flag Link Mon Nov 24, 2008
Ashley: You certainly can make offers on a home purchase with an added contingency for you to sell your home. However, most sellers don't like taking their home off the market while waiting so you'll want to price your current home extra well to satisfy a more quick sale. You might also allow the seller to continue to market the home and enter into backup contracts.

I have a great contact in your home area. Feel free to let me know if you'd like further assistance.

My contact information is below

Owen Zweiback PA, GRI, Realtor, e-Pro
Coldwell Banker Real Estate

239-269-3077 Cell
800-547-3019 Toll Free Office
http://www.floridamoves.com/owen.zweiback Personal Website
http://activerain.com/blogs/realtoro Personal Blog
0 votes Thank Flag Link Mon Nov 24, 2008
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