Are you looking to sell your home in order to upgrade or downsize? Are you tossing and turning at night in cold sweats worried that the move will leave you homeless or sleeping on your parents' couch? I have good news for you. Most people who sell a home do so to buy another. So, this is a problem that we Realtors are adept at managing. You have options.

This is part one of a three-part series designed to explain your options for buying and selling real estate simultaneously. Today we cover: contingent sales.

HOW IT WORKS

List your current property for sale and open escrow. Keep that escrow opened until you find a replacement home. Open escrow on your replacement home and organize the escrow time lines for both homes to close at the same time. Voíla! You've sold your current home, secured your next home, and you didn't have to knock on mom and dad's door for temporary shelter. 

PROS

This is the option that feels safest to most of our clients. It's the "minivan" option if you will. Why? Because, if you don’t find a replacement home, you don’t have to sell. These sales are organized to give sellers right of cancellation on the escrow for their current home if finding a replacement proves to be a thornier endeavor than expected.

Another big benefit is that you are able to move directly from one home to the next without having to secure temporary housing. 

CONS
The reason we're exploring three options for move-up buyers such as yourself is because not every shoe fits every foot, as they say. There are two possible drawbacks to contingent sales.

The first is that if you are shopping for your replacement home in a market that is a seller's market, it will be harder to get your offer on replacement home accepted. Why? Because in a seller's market, sellers of real estate have multiple buyers to choose from. A seller will be more inclined to accept an offer from a buyer that is ready to go now and does not need to wait to close on a home to secure the deal. It is not impossible, but it will be an exercise in patience for sure.

The second drawback is finding a buyer that is willing to wait for you to find replacement. If you are shopping in a seller's market (which is the case for most markets across the United States in 2021) it will not be hard to find a buyer willing to wait for you to find your next home. But, the buyer may place a time limit on how long they are willing to wait. Most buyers in the LA metro area are giving sellers about 60 to 90 days to find a replacement. 

To book a consultation for your particular situation, click here