Home Selling in 91354>Question Details

Karen G, Home Seller in 91354

I own my home outright And have placed it in todays market how easy will it be when under contract to purchase a new home?

Asked by Karen G, 91354 Sat Jun 5, 2010

I want to purchase my next home with cash but can not do anything till this one sells

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16
Hi Karen,

Thanks for the question!

Trying to do a concurrent close and/or trying to purchase a home contingent on the sale of your current home are both difficult in this market. Since you would be paying cash for your new home I would sell first and then really take your time to find a home that's right for you. Normally real estate slows down around the holidays and you are more likely to get a better price than trying to purchase now with the multiple offers that are occurring currently.

The only down side is the storing of your belongings in between residences.

Hope that helps!
1 vote Thank Flag Link Fri Sep 13, 2013
Dear Karen,

In my opinion, you should sell your home first and then begin looking for a home to purchase. You can always lease short term while you are looking. Matter of fact, you should lease in the area you are considering moving to.
How long it will take for you to find a new place depends upon you and what you are looking for. With home prices where they are right now, you will be able to upgrade to a better home, better area, with the money you make on yours.
best of luck to you!
1 vote Thank Flag Link Mon Dec 6, 2010
A lot of factors have to be taken into consideration before answering this question out right. It will greatly depend on the offer you have on your home and the price range you are purchasing. The stronger your offer is on your home the better your odds. In this situation taking the highest offer is not always the best. You need to make sure your buyer is not contingent first. Then obviously an all cash offer, conventional loan, then an FHA offer in that order would be best. Make sure your agent shortens the contingency time periods on your buyer. If you find a home you may want to know that your buyer is definitely going through with the transaction and removes contingencies before you would have remove contingencies on the home your buying.
If you are buying a home above $500K your chances of an acceptance a little better. Santa Clarita's inventory $450K and under is low and most homes go out in multiple offers. If the seller has an offer from a non-contingent buyer they will usually take it. The only way they wouldn't is if you offered a lot more money. In today''s market I don't advise that. The market $600K and higher is a lot slower.
The lending market right now is really tricky, make sure you never remove your contingencies unless you're a 100% able to get the loan. Also never completely count on the fact your buyer can close even if they remove contingencies it still could fall apart at the last second. Just make sure you have an agent that is knowledgeable and keeps you educated of the transaction at all times.
1 vote Thank Flag Link Fri Oct 1, 2010
Hi Karen,
Purchasing a home with a contingency is extremely challenging in today's market. 99.9% of sellers want to have the buyer ready to go when they are ready to proceed into escrow. The listing agent has the concern that if they were to take their listing off the market and accept a buyers offer with a contingeny that buyers buyer may fall out of escrow which then causes a domino effect.

Staying with your daughter or the idea of rent on a month to month basis, perhaps a fully furnished apartment, putting your home items into to storage allows you to walk into any listing with an all cash offer this put YOU in the drives seat. Renting would only be a very temporary situation to put yourself into the best position.

- Jennifer Ricco
1 vote Thank Flag Link Tue Jun 8, 2010
Glad you're not one of those who is underwater....how refreshing! The answer will always be "it depends"

Is your house priced competitively so that it attracts a large pool of buyers? That will certainly help get it sold sooner. Since it's not offered as a short sale, buyers and their agents will be more attracted to your property than a similar one that is a short sale or bank-owned.

Is your house presented well? Does it have curb appeal? Is it in good condition?

And as for a replacement property....are you looking to buy a house that you can pay all cash for?

Where are you looking to buy, and what is the market like in that area?Are you going to offer a reasonable price, or are you thinking of making a low-ball offer?

Are you represented by a realtor both on the selling as well as on the buying side? On the listing side, your realtor can expose your property to the biggest target audience. Om the buying said, your realtor can research properties to meet your search criteria and needs.

If you get an offer on your house, and you find another property to buy, you may even want to do a simultaneous escrow closing. Your realtor and escrow officer may be able to coordinate such a transfer.

Good luck!
1 vote Thank Flag Link Sat Jun 5, 2010
The more prepared you are when you list your home the easier time you will have. I would advise being clear on the area your want to move to, the pricing, having a preapproval with a bank, and funds lined up for your new purchase.

At the same time, you also have options to make the transition smooth with your current home. You can make the sale contingent on your purchasing another home. If the timing of your sale and the availability of the new home to move into is not quite in sync, many times the purchaser of the Seller's home will lease it back to the Seller for a few weeks while the Seller is waiting for his new property to become available to move into. A good realtor can help you make this transition smoothly and help you cover any unforeseen situations in the transition.
0 votes Thank Flag Link Tue Dec 9, 2014
Thanks every one-Am in floridas market and so far sign just went up today and we have had 2 showings-Most homes are very cheap around here. Already planned on renting for a few months with my daughter taking over the rental but my delima is that i hate wasting good money with rent. rather just purchase my next home with owing nothing-
0 votes Thank Flag Link Mon Jun 7, 2010
Karen:

You may be able to do a sell-buy in the same day, but if you really want leverage then I would close your home and move into a temporary house. From this position you can take the time to search the market and then use your cash to get an amazing deal.
0 votes Thank Flag Link Mon Jun 7, 2010
Hi Karen,

You have recieved lots of good information from the previous agents! Make sure your house is super clean & termite inspection & repairs if any have been performed Price it right while it is new on the market, you want a steady stream of buyers coming through, to attract solid offers.

Remember, it is not always the sales price the gets an offer accepted, but in this market the terms are very imortant...are you a for sure slam dunk to close rather than someone with contingencies (Cash is King).

Having to sell your house to purchase your next, does weaken your position with the banks. Not a bad idea to rent or stay with a family member or friend for a while to remove that contingency and greatly strengthen your buying position.

Also, if you need to get a little financing you can still be a very strong buyer with a large down. Remember to also contact your tax advisor, to see which benefits you more, having a new home all paid off or carrying a small home loan. Best of Luck with your sale & purchase.

Born & rasied in AV. Servicing AV, SCV, SFV and Ventura County
TV-Tracy Van De Mark
Keller Williams Realty
(661) 310-4004
DRE01487734
Web Reference: http://www.TVandemark.com
0 votes Thank Flag Link Mon Jun 7, 2010
Karen,

You will not be a cash buyer until you close escrow on sale of your home. If you try to buy a replacement home prior to closing on the sale of your home you will be a “contingent” buyer. Contingent buyers are not attractive to sellers. Cash buyers are. Ask your agent why.

My advice is that you should sell your house and, after you have the cash in the bank, buy a replacement house. You may have to suffer the inconvenience of having to move to temporary quarters but you will be in a better position to negotiate the purchase of your replacement home once you are truly a cash buyer.
0 votes Thank Flag Link Sat Jun 5, 2010
Dear Karen G,

You will be in a terrible position when it comes to buying a resale home. You will be in a great position with many of the new home builders if you are planning on buying a brand new home. Resale home are dominated by REO/Bank Owned Properties and Short Sale Listings needing Lender's Approval in order for the home to be sold. In either of these purchases the seller is the Bank or needs the Bank to allow the sale to be consummated. The Bank will not look at an offer that has a contingency of closing escrow on your home. My suggestion is to buy a new home or plan on renting month to month while looking without any home sale contingency.

Let me know if you would like me to assist you!
Tony Lewis - RE/MAX of Valencia http://www.TonyLewis.com 661-510-7975 Cell Direct
Web Reference: http://www.TonyLewis.com
0 votes Thank Flag Link Sat Jun 5, 2010
Hi Karen:

Not only will it be relatively easy but you should leverage your "all cash buyer" position to get favorable terms on the property you are buying including reduction in the sales price. Do realize, that other than some investors, an all cash buyer is a rarity. This puts you in a strong position to negotiate the terms. As you have indicated, once under contract, make your contingent offer which would say that you will proceed with the sale and close escrow only after the sale of your property is completed.

Good luck.

Bob Khalsa
United America Realty
scvbroker@gmail.com
0 votes Thank Flag Link Sat Jun 5, 2010
Depending on your price AND terms, you might be able to sell your property rather quickly.
0 votes Thank Flag Link Sat Jun 5, 2010
Hi Karen,

Congratulations on placing your home on the market, AND being in a full-equity position!

As you probably know, home inventories here in the SCV are very low. This will definitely help you to get your home sold quickly, but you will have competition on buying your next home.

Are you financing your next home? Do you need to have your current home sold as a contingency of the purchase?

These questions are important, as the seller of your new home will consider any of these. Unless you are buying all-cash, purchasing a home today in this market is still tricky. If you have any contingencies (appraisal, loan, or selling your current home for example), this can make your offer not as desirable as someone else.

By the way, is your home on the MLS yet? I might have a buyer in mind.

Best of luck to you!
0 votes Thank Flag Link Sat Jun 5, 2010
Hi Karen,

This is a great position to be in. Speaking by personal experience. Since you already know what you will be neting from your sale you can go out and fine a new home and put in a contract contingent to yours selling. Have your Buyers Agent assist you with this. So once you close on your property you can close on the one you are purchasing. This will be an existing process really suggest hiring your own buyers agent that will represent your best interest in the process.


Best of luck to U! hope this helped.
Web Reference: http://www.EcoHomesGA.com
0 votes Thank Flag Link Sat Jun 5, 2010
If you are buying all cash - and from an owner (not a bank foreclosure or short sale), you can close very quickly - sometimes in a matter of days. Standard transaction time frames vary by area. In metro Atlanta it is typically about 45 days - but most of that is for loan processing. If you close all cash, you just need to verify clear title and funds. Title searches usually take less than a day, but they are typically backed up a couple of days if you don't put a rush on it.

If you have a sharp agent and a good closing attorney / title company, they can (and usually will) make it happen very quickly.
0 votes Thank Flag Link Sat Jun 5, 2010
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