Buying a House Contingent on Selling Yours? Here Are 5 Tips.
As an existing homeowner who is ready to purchase another home, you may only be able to do so once you have sold your present home, so the purchase of your new home is contingent on you selling the home you are in.
To be a successful seller and buyer at the same time, here are five strategies that can help you avoid owning two homes or having two mortgages.
- Be intimately familiar with the contingency agreement so that you can maintain tight timelines with buyer performance on your present home. Your success in closing on a new home depends on your buyer’s ability to close on your home.
- If you are in a seller’s market, be prepared to have your accepted offer rejected if the seller receives another offer that is not contingent. Most sellers will want you to agree to the “bump clause” that will allow them to move forward with a stronger offer if you can’t remove your house sell contingency and stay in the deal.
- Show the seller that you are a serious contingent buyer by aggressively pricing and marketing your present home. Stage your home and increase its curb appeal for a faster sale.
- A strong contingent offer will have a better chance of a seller being willing to negotiate a deal. Be aggressive on the offering price, and keep the terms and other contract contingencies to a minimum.
- For expert advice and guidance, be sure to work with an experienced real estate agent who can help coordinate the simultaneous selling and buying of your home.
Should I Buy a Condominium or a House? The Pros and Cons
The question as to if you should buy a condo or a house really depends on your monthly budget and what type of living is important to you. There are pros and cons of each lifestyle.
The lower price point of condos better accommodates entry level home ownership, resulting in a smaller mortgage. Homeowners insurance will also be less. Condo associations will be responsible for all exterior building and grounds maintenance. You may also gain the benefit of a community pool and recreation facilities.
While the amenities are nice perks of condominium living, they do come at a cost. Qualifying for a mortgage will be impacted by the monthly Homeowners Association (HOA) dues you will be paying to cover these expenses. Not all condo developments are approved by the FHA, which limits your loan options. If this is the case, you may have to plan on qualifying for a conventional loan.
Single family homes give you more privacy and liberty to do what you wish with your home. Typically, there will be more living space and you won’t have to share walls or yards with anyone. You will have many home loan options with a single-family residence. Single-family homes also appreciate faster than condos.
There will be more expense in maintaining a home and you usually have a higher mortgage payment because homes cost more. Plan on paying more in taxes and insurance.
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