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Lovejohn, Home Buyer in Buffalo, NY

Reverse contingency - Can I sell my home contingent on finding a new one? How difficult is this?

Asked by Lovejohn, Buffalo, NY Thu Oct 25, 2012

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Thanks so much for your help, everyone!
0 votes Thank Flag Link Fri Oct 26, 2012
It is not unusual to do this. Make sure your Realtor puts in the "comments for Realtors" that seller must find a place to live.

Do not start looking for anything until you are in cotract.

I once sold a house at the broker's open in June. The contract that was written stated a closing of January 30th or earlier. The seller found a home and and both closed in October.

If the notation is in the listing, someone who needs a home immediately will know this is not for them.
0 votes Thank Flag Link Thu Oct 25, 2012
Talk to a CPA (accountant). Everyone's financial situation is different but I think you have 18 months or something to buy another property. There is also a newer IRS ruling about the maximun amount. Again, talk to an Accountant.
0 votes Thank Flag Link Thu Oct 25, 2012
Thank you for all the answers. I have another question......in New York State, if I sell my house before finding a new one (meaning bank the money and renting for a while until I find a new house), how does it affect my income tax? I have been told by an attorney that it is a bad idea to do this. Thank you.
0 votes Thank Flag Link Thu Oct 25, 2012
If you sold your home or are moving into town and need to find a house ASAP and then you found the perfect house but were told that the sellers are accepting your offer however, they need to enter into a binding contract to buy another home and they would like 2 weeks to do that, what would you do? Before you answer that question, understand that a reverse contingency benefits the seller more that you because; 1) you are bound to the contract (after you pay for a home inspection and remove that contingency) and the sellers are only bound to it IF they find something, have a satisfactory home inspection as well and then remove the "reverse contingency". 2) If the sellers do not enter into a binding contract within the time specified in the contract, they are no longer obligated to sell you the house and you have to start all over again unless you both agree to extend the "reverse contingency" expiration period. 3) If a better home comes along during the "reverse contingency" period and you (the buyer) like it better, you may have to wait until the "reverse contingency" lapses. So, you would tie yourself up like that as a buyer?

In a very brisk market like this, sale contingencies and reverse contingencies are not well received by buyers or sellers.
If you want to move and can live with the possibility of selling, closing and moving to temporary housing until the right place for you comes along for you, then do just that.
0 votes Thank Flag Link Thu Oct 25, 2012
Hi Lovejohn,

Of course you can. You can place any contingencies you want to - it's your house. However, most buyers will not want to do that so you may not get any offers. You can try it if it's necessary for you - after all, it only takes one buyer to really want your house and they may be willing to wait?

Good luck.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Thu Oct 25, 2012
You could try, but simply put, you will scare away most buyers who will not want to spend time and money only for you to decide not to sell. It is best to find a home you like, make your purchase contingent on you selling your home.
0 votes Thank Flag Link Thu Oct 25, 2012
You can negotiate whatever you like, however the potential buyer(s) may not be willing/nor have time to wait...therefore consult with your agent...
0 votes Thank Flag Link Thu Oct 25, 2012
You can negotiate a closing date far enough in the future to allow yourself time to find and close on a prospective property. A good agent should be able to facilitate this.
0 votes Thank Flag Link Thu Oct 25, 2012
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