I am a bit confused here. Do you have a Realtor who is helping you witn the sale and the purchase of your home? I am with Rockinblue that if you don't, you really should have, especially since you are trying to do both at the same time.
If you do have a Realtor, I hope your realtor explained any potential situations and pitfalls, options to you clearly; if not, you might want to reconsider the service you are getting and/or talk to the broker in charge to get better advise.
If you don't have an agent at this time to walk you through this process the link below is to an Austin agent who seems to be one that listens. Just from my observations on this board, I would at least talk to her.
Contingency is the safest way to protect your interests in the transaction. If the seller has a few offers and only one with a contingency, then yours begins to look less attractive to them. However, there is nothing barring you from submitting this type of offer. It is a bit of a dice roll in whether or not the contract gets accepted.
I would say the most effective way to do this type of deal is to put in a "leaseback" clause on your home sale, get it on the market and start looking for your new home. If you can price aggressively with the sold comps, then you should have no problem selling your home within 60 days. If you haven't found a home by the time you get an acceptable offer, you can lease the property back from the new owner after closing until your new home deal goes through.
There are ways to handle this type of transaction. Bottom line you need a Realtor who has experience in these types of transactions. One that will market your current property aggressively as well as assist you in the purchase of the other. If the current home is your homestead then a 1031 will not work. I recommend you interview a few Realtors and I would like you to include me in that process. My team and I bring a lot to the table and would like the opportunity to share with you. Good Luck!
Harmony Marotz RealtorÂ®
CenterPointe Real Estate Group
(512) 775-1164 Cell
Takes a good strategy session with an experienced Realtor to help assess your options, your risk tolerance, your mortgage options, your neighborhood(s) micro-markets.
there are several ways to handle the transition -- it's a good idea to sit down and work out the strategy beforehand with a realtor -- it's important that, when you're shopping "comps" that they are actual closed transactions not list prices out of an online mls service -- there are proven methods for maximizing your sales price which can yeild 5-15% over the market value --
per previous posts, the most conventional way is via a contingency contract -- having been involved with such transactions in the past, you should know it does leave you open to some risks -- you could also buy and lease back mtm with the current owners of the new -- everything's open to negotiation -- having a plan going in is smart --
It is possible to do the transaction and hopefully you already have a Realtor guiding you through the process. I have done that type of transactions 3 timas once with one of my own property.
The first step is to list you property with a contingency of finding suitable home. Observe and analyse your market, how many days houses are staying on the market in your area? Price your home accordingly and once you find the home you like also make contingent to selling you property.
The pitfall with that is if the property you like receive another offer that it is appealing to the seller he/she can come back with a 48 right os first refusal which means you have 48 hours to drop the contingenty of selling your home otherwise the seller will drop your offer and move to the next one (the other offer can't have the same contingency as yours).
The service of a good realtor is fundamental to coordinate all the dates since usually the 2 closings will happen on the same day.
Well good luck to you.
RE/MAX On Demand