By the way, not only have I been in Real Estate over 25 years I've also been a licensed appraiser so give me a call to see what your home is valued at. I'll do a market analysis for you at no charge. Then we can discuss moving forward.
Good luck in any case.
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There's a chance the sellers will accept your offering price with a sale contingency BUT the home will not be taken off market until the sale of your home is secured.
If you are truly interested in the home you saw on Sunday, call in local Realtors to get an idea of your own home's value. This will give you a true picture of what you will be able to afford in the offering price. The sooner you start the process..preparing your home to sell, listing the property etc. the closer you will be to obtaining the home you saw.
In the spirit of addressing a topic that may be of interest to others....
I am finding that sellers are more receptive to offers with home sale contingencies now than when the market was better. The seller will want evidence that your home is listed and priced realistically, ie has a chance of selling in a reasonable time frame. If you are overpriced, then your chances of selling are nill, and a seller would likely reject your offer as a result. In this case, both of you would be wasting your time.
If the seller does accept, he will likely insist on a kick out clause and continuing to market the home until the contingency is lifted. If another offer comes in without a similar contingency, you will be notified and given an agreed upon amount of time (usually between 24 and 48 hours) to lift the contingency or lose the deal.
The downside to the seller is that some buyers will not get involved with a property that has a contract disclosed.
As Marc advised, if you are fortunate enough for the seller to accept, then be sure your home is priced aggressively to sell quickly. Your best bet is to price just below market. Time is not working in favor of sellers in our sluggish/declining market. In fact, the sellers who price correctly out of the gate are yielding more, NOT less, than those that test the market at a higher price first and move down from there. There is loads of evidence to support this....big marketing blunder. Price right or sit, period.
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It is unlikely that the seller will accept your offer. They do not know how long it will take for you to sell your house, and they will probably not want to wait for you.
You can certainly try, but the odds are pretty long, probably about a 10% chance at best.
If you do get an acceptance, be sure and price your house aggressively to sell it quickly. You should price it below other recent sales and try to get multiple offers since you will need someone who can close very quickly.
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I feel that JR is really right here.
I hate to be brusque, but the simple fact is that if you want to buy another home, you MUST list your current home. The reality is that the home that you saw the other day might be long gone by the time yours gets sold, but listing your home with a REALTOR is what you need to do to get the ball rolling.
It can happen, but lets be realistic here... if you really want to buy this house make an offer with a contingency and a first right of refusal. This way, if you really, really want this house, you can still buy it and get a bridge loan until your house sells. Yes, I know it sounds scary, but I may be your best shot at it.
Right of refusal:
This means that the seller will accept your offer and still have the house on the market.. if someone else comes in and wants to buy it.. and can fully perform the contract with out having to sell. The seller has to call you first and tell you to step up to the plate and deliver ( buy the house).. or they are selling the house to someone else.
I have a client that did just this.. and we are closing on a much bigger foreclosure home in a much higher rated area.. he recently sold his home FSBO.. ( with my coaching) he did take 20,000 less for his home, but he still will only have a 40,000 mortgage and purchased a 600k home for 450 in forclosure!
Can't beat that with a stick!
Try to avoid the contingency, the market is a buyers market, yes, but sellers still need to sell and a contingecy is NOT selling.. it is hoping and waiting that your home sells.
My main market is Ridgewood and even though the market has changed it is not an area that has a problem selling homes. Homeowners know what they have -that is why they bought there to begin with.
If you do make an offer-(depending on the exact property)(I know of a few that might) they will keep it active and probably give you x days to get it under contract. And I'm sure price as always makes a big difference. Where is your home located and what are you offering to the buyer of your home?
Despite most negative opinions, anything is possible. The first thing you should do is determine what your house is worth. If you need help with that, contact me via my website as I am a licensed appraiser. The next thing to do is determine the sellers motivation. A buyers agent is the ideal candidate to help you with that. You may have already created some difficulty for yourself here. If you told the agent in charge of the open house that you have your own representation, than you are in the clear. If not, than there are still options, especially if the agent in charge of the open house did not give you a Consumer Information Statement, as required. But the bottom line is we have to determine how motivated the owner is to sell and what timeframe is important to him. If the seller is facing a relocation or short sale, than your offer will probably not have too much success, since time is of the essence. However, if they are just downsizing, you might have a chance.
The next thing to determine is how much the home you want to purchase is worth. I can obviously help you there also. Then a logical offering price can be arrived at. You might have to offer a little extra to induce the seller to accept your home sale contingency.
So basically, it comes down to information. You need quite a bit of it. You're also going to need a very strong marketing program to get your home sold quickly if you decide to pull the trigger.
If you want to work all of this out, click on my photo and evaluate my profile. Then if you like you can contact me via my website and I'll be happy to help. Good luck!
The proper way to approch this situation is to list your home for sale with a Realtor. Someone that can walk you through this transaction. Secure a buyer for your home and then you are ready to make an offer on another property.
Having said all that, one never knows what a seller would be willing to do to sell thier home. You can always ask, all the seller can say is no thank you.
Please feel free to call me anytime if you wish to talk about this more.