Forward Bank

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.

Five strategies to avoid owning two homes or having two mortgages

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

Contingent sales can pose many challenges, so please don’t hesitate to call upon our mortgage team for advice.