I recently had a Destin Florida home listed where the seller accepted a contract contingent on the buyer’s house house selling. This is always a predicament for the buyer. When his house sells, he may use the profits as a down payment on a new home. He may also need to sell his current house to qualify for a mortgage on another property, because the payment on the existing house will be eliminated. He cannot, however, buy a new home unless his current Destin home is sold. The problem with this strategy is that most sellers are not comfortable with a home sale “contingency” contract. What can you, if you are the buyer, do in this situation? Here are a few ideas:
1. Sell your existing house and move into a temporary home, then look for another house.
2. Sell your existing house and “rent back” from the buyer until you find a new home.
3. Make your offer contingent on your house selling with a “Right of First Refusal“. This will allow the current Destin sellers to keep their home on the market. The standard Florida Association of Realtors contract states that should the seller accept another offer, he will present it to you with the personal information and price redacted. You will then have 72 hours to remove your contingency and deposit additional earnest money. If you don’t, your contract will be terminated and the other contract will move into first position.
4. Offer the seller a strong purchase price and a non-refundable deposit to take his property off the market. Why? Put yourself in the seller’s place. It is a risk for them to “wait” for your home to sell. It may not sell at all, or it could take a long time. If they take their home off the market, they may lose another buyer. By offering them a non-refundable deposit, you are making your offer more attractive.
5. Finally, if you are confident in your Destin area Emerald Coast of Florida home sale and have the financial wherewithal, you may be able to get a bridge loan for temporary financing that you can pay off or convert when your home sells.
If you need to sell your Destin home in order to buy another, contact me for more ideas.
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Email Wendy: [email protected]