With the right contingency plan, it is easier to time a tricky house purchase in Boulder County. Buying real estate in Boulder County before selling a current house often intimidates home owners who can’t afford to juggle two mortgages. Lenders have programs and products in place specifically geared for the borrower in a temporary financial predicament such as bridge loans. According to an article by the Washington Post, most people can’t afford to own two homes at the same time. Even people who flip homes for a profit worry about the carrying costs of the investment home such as home owner association fees, utilities, mortgage, taxes and property insurance costs. If you find your dream home before selling your current home, consider a few tips for making the juggling act work for you.
Creating a contingency plan
Ideally, a buyer tries to time the closing dates on a home purchase and sale. Oftentimes, real estate agents help you avoid problems by putting a home sale contingency in the offer to buy a new home. The purchase of the new home is subject to you landing a buyer for the current home. Of course, in a seller’s market, not every seller is willing to take an offer that includes a contingency. Motivated sellers in particular aren’t as willing to wait. At the same time, sellers who have confidence in the fast-paced seller’s market and good real estate agent in Boulder County could go or a contingency. A contingency typically stipulates that the buyer has to materialize within one more two months or the contract to buy the new home is void.
Keeping your earnest money
In order to keep your earnest money, it is important to follow the dates outlined in the contingency plan. Your Realtor helps you provide timely notices such as notifying the other party that you have a buyer or notifying the seller that you have not landed a buyer.
If you are able to move out of your former home into a new house before selling the old home, consider staging advice. Most home stagers recommend leaving some clothing in the closets as well as décor items. A completely barren home often feels depressive to a potential buyer. Also, if a buyer knows you already bought your next home, they might sniff desperation and give a low ball offer. At Laura Guerra Real Estate, we help home buyers who also have a home to sell. For more tips, contact us today.