If you are selling your house it can be a little nerve-wracking if you don’t have a home lined up. Nobody wants to move twice before settling down in their new home. Here are a few tips to help you save yourself some stress.
One idea to bat down that concern: Add a seller’s contingency to the contract that requires you find a new home of your choice to live in before closing.
It’s a cousin of a more commonly known contingency, one that home buyers add to a contract that requires they sell their current home before settlement. In competitive markets, as many are today, most sellers won’t accept offers with this contingency — not when there are plenty of others that come with no strings attached.
But in markets short on inventory, sellers have the upper hand, and may opt for a provision to ensure they won’t end up without somewhere to live at the end of the process. Getting a buyer for your house first also helps you set your budget before you start house hunting.
“Most people are worried about what they’re going to get for their home,” Anderson said. “Why not figure that out in advance?”
Here’s how it works: Anderson typically notes the seller’s desire for this contingency in the agent remarks of the listing. Eventually, the contingency is worded into the contract, noting the number of extra days the seller wants to find his or her next home, perhaps 30 or 45 days.
If after that time period the seller hasn’t found a place, the buyer can back out. But he or she would have the option of sticking around if still interested in the property, adhering to the seller’s timeline, he said. Turns out, there are many buyers who are fine with that stipulation, he said.
For a deal headed to the closing table soon, “the first-time home buyers didn’t even bat an eye,” Anderson said. “After a quick call with the buyer’s agent, I sent her the legal paragraph we needed in the contract. She sent the offer an hour or two later.”
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