Home Buying in 07450>Question Details

Sandy, Home Buyer in Ridgewood, NJ

We went to an open house in Ridgewood last Sunday, I really like the house. We are thinking about selling

Asked by Sandy, Ridgewood, NJ Fri Mar 21, 2008

our house in Ridgewood and buy that house. Since right now is buyer's market, I wonder how likely the owner will expect my offer pending sale of my house?

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16
I am 99% certain the owner will not accept your offer with a contingency, you would have to show a contract on the sale of your house. If they do consider it, they would insist on keeping it on the market until you have a deal on your house. If you can carry both houses for a few months, however, and can waive the contingency, then go ahead. In other words, put yourself in the owner's shoes (as you would be the seller for your own house) -- would you accept an offer contingent on the sale of someone else's property? How could you move ahead with your plans with this uncertainty? Talk to your realtor about other options -- if you need me to refer you to someone, let me know!
1 vote Thank Flag Link Fri Mar 21, 2008
Hey Sandy.....good question. I say "go for it" as you won't know until you do. I'm not afraid to writie up a contract with confingencies as we are experiencing some unusual things happening in this crazy market.

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.
Regards,
Carolynn Monaco
Sotheby's Ridgewood
201-489-0256 direct line
0 votes Thank Flag Link Thu Mar 17, 2011
DATED THREAD ALERT!

Anyone else who responds to this thread will be severely punished.
0 votes Thank Flag Link Sun Feb 27, 2011
If you want the unvarnished truth read on:

The seller would be crazy to accept the offer pending the sale of your house.
I think the rest of the community will agree.
0 votes Thank Flag Link Sun Feb 27, 2011
Don't forget a home inspection! I cover all of New Jersey and I am available seven days a week. In addition to the home inspection, I do radon testing and termite / wood destroying insect inspections.

John Falco
FHA Home Inspections, Inc.
201-500-7460
john@fha-homeinspections.com
0 votes Thank Flag Link Thu Nov 11, 2010
Hi Sandy,
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.
Good Luck,
Chris Gubb
0 votes Thank Flag Link Fri Nov 5, 2010
I see this one bubbled to the top because of a recent answer - so I doubt Sandy is tuning in, if you are Sandy, then I hope that you were successful with your sale and purchase and have settled in nicely.

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.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Wed Oct 6, 2010
Hi Sandy,

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.

Good luck.

-Marc

Marc Paolella
Relocation Director/Appraiser
Century 21 Joe Tekula Realtors
Phone (direct): (973) 584-4235
Coolest map-based home search: http://www.marcpaolella.com
0 votes Thank Flag Link Mon Oct 4, 2010
never hurts to ask!!!!
the owner should have the chance to respond to your question. fear not----ask!!!!
0 votes Thank Flag Link Mon Oct 4, 2010
Sandy,

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.
Web Reference: http://www.OwnGR.com
0 votes Thank Flag Link Sat Mar 22, 2008
Sandy, I hate to say it, but unless you have the cash or can get a mortgage for both houses that you can carry I would not advise getting into contract on one house when you are still at the "thinking" about selling stage. You're going to own two houses, or lose your deposit. No agent in their right mind would advise their client to accept an offer from someone who doesn't even have their house listed unless it is a cash deal and/or there is no contingency on the sale of a home. JMO, but speaking frankly, those are the facts.
0 votes Thank Flag Link Sat Mar 22, 2008
Let's be frank here, Contingencies are tough in any market. I understand that you want to trade up - But, think about it, you go to somone anxious to sell their home and make an offer and say ... oh, but you have to wait until I sell MY house first. What would be your response?

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.
0 votes Thank Flag Link Sat Mar 22, 2008
Hi

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?
Web Reference: http://www.bparkes.com
0 votes Thank Flag Link Sat Mar 22, 2008
Hi Sandy,

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!
Web Reference: http://www.marcpaolella.com
0 votes Thank Flag Link Fri Mar 21, 2008
Every sale is different, but all have one thing in common. Whatever the buyer and seller agree on, is usually, what happens. In this area(Bergen County) Home sales are still happening everyday. Most sellers currently are not very happy about being tied to another home sale as part of the deal. They have been waiting sometimes for a few months before getting an offer and know that the sale of you home may be a few months away too. Picture this - you place your home up for sale. It sits for a few weeks or maybe a month or two. Finnally an offer comes in. But, the buyer has a home to sell and wants you to take your home off the market and wait for them to sell thier home. Would you do it? Would you want to stop showing your home to buyers that may not have a home to sell? Maybe a buyer would come shortly after that lives in an apartment or with thier parents. Buyers that could close in a short period of time without waiting. Now, that all changes the day you have a buyer for your home or the day that buyer has a buyer for his home. Now, things can happen.
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.

Brett Anastos
201-615-1113
Web Reference: http://www.BrettAnastos.Com
0 votes Thank Flag Link Fri Mar 21, 2008
Well you can begin by getting it listed sightly below market value. In a declinging market, you'll have to be competitive in order to attract a buyer. Pricing it correctly is the best thing any soon to be seller can do. Consult a Listing Agent who has an average of selling thier homes within 30 days. You can request these stats from agents before they come out to your home. Make sure tha stats are in writting and done in the standard MLS print out format. Once your home is listed and priced right, you will have a good chance of having the seller be more open to taking a contingent offer. You in turn may want to be open to a 72 hour right of refusal should they get a higher offer. Good Luck!
0 votes Thank Flag Link Fri Mar 21, 2008
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