rthorndyke, Home Buyer in El Segundo, CA

Is it possible to make an offer on a house before you are able to sell your home and have the money for down payment?

Asked by rthorndyke, El Segundo, CA Wed Apr 24, 2013

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Jim Paulson, Agent, Boise, ID
Wed Apr 24, 2013
Yes!

However, the more effectively your offer is packaged and presented will impact the seller's response to it.

If your are confident in your ability to sell your home at a price which would allow to buy the next home, you might consider making your earnetst money "non refundable" as a good faith measure! This is not typically done; yet it is effective!

Bridge loans or cross collateralize loans are effective as well since the risk is on you to get the home sold, not the seller of the home you're trying to buy.

Yet another option is if the home is vacant that you are hoping to buy, would the seller consider an extended closing date allowing you to rent the home awaiting the final closing date?

Making offers contingent upon the sale of another home is almost like playing dominoes. You have to have them all lined up right and they have to all fall in the right direction at the right time for the desired effect. You never really know how many might get lined up since what happens if the buyer of home needs to sell their home first, and the buyer of their home . . . .

The more "contingencies" your offer has, the less you can negotiate on price and other terms!

Best of luck and I hope this helps!
Jim
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Tim Burroughs, Agent, Boise, ID
Wed Apr 24, 2013
It depends on the seller and what their goals are. If you have the other house listed and the report from your Realtor there is positive, you may be able to write a contingent offer. The seller will be more invested to accept that offer if you have an offer on your home, rather than it is just "for sale".

Do you have a particular property in mind here? I could research with the seller for you to determine what their motivation is.

Thanks!
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Amber Stocke…, Agent, Meridian, ID
Wed Apr 24, 2013
Yes Diane! Great point. I did have a client selling in Sacramento, California that did not yet have her home under contract, however, was able to use a 'Bridge' Loan to purchase/close a property locally prior to selling her home in California.

If you need any assistance including lender help feel free to contact me!
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Diane Gross, Agent, Irvine, CA
Wed Apr 24, 2013
this varies from location to location. In Orange County its difficult to use a contingent offer. Therefore, you wouLd need to get some type of a swing loan now against your current home to pull out the equity and then put that down on your next purchase close on your new home and then saw your existing home.
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Sharon Walker, Agent, Boise, ID
Wed Apr 24, 2013
You can put an offer on a property making it contingent on the sale of your home. Since our market is selling houses rather quickly, a seller would want to know that you have your property on the market, if you have an offer or if you have a closing date. A seller would probably want to continue to market the property to other offers. If that were the case, you could ask for a 72 hour bump clause in the contract that would give you the chance of having time to take your contingency of sale off of the property.

An offer can be made on any property with certain terms and conditions. It is up to the seller as to whether they would accept the offer with those terms and conditions. That is where negotiating comes into play. Making the transaction acceptable to all parties is what real estate agents work hard to make happen by helping and advising their particular client and communicating with the other agent.

If you want to talk further, please let me know. You can also check out my website. Thank you.
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Amber Stocke…, Agent, Meridian, ID
Wed Apr 24, 2013
Yes, Jacqueline Rogers is correct with the answer below, however, properties that have foreclosed (REO) or that are marked as 'short sales' will usually not allow a sale of home contingency on the contract. Also, our local market is currently in a 'sellers market' for most price ranges under $500,000, so many sellers are not as open-minded with a 'sale of home' contingency currently, due to the low supply of homes and high demand by buyers.
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Jacqueline R…, , Boise, ID
Wed Apr 24, 2013
Yes, you could make an offer contingent upon selling your house. Generally the offer would be written up that you have xx number of days to sell your house and the sellers generally would continue to market the house with the notation of a contingent sale. If another buyer comes in and makes an offer you would have xx number of days to remove the contingency or remove yourself from the purchase.
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