Non-Contingent on Selling Previous Home
What does being buying non-contingent on your home sale mean?
Being non-contingent on the sale of your current home, means that you can buy your new property prior to the sale of your old property or departing residence. Being contingent upon sale, means that you cannot purchase a new home before your old home sells.
Why be non-contingent on your offer?
Sellers are looking for buyers that can deliver on their offer price. If a buyer is contingent on their home selling there is a chance that their home sale doesn’t go as planned and the offer on the new home falls through. Sellers prefer offers that are “clean”, meaning they are simple likely to close escrow.
As a buyer, it can also be difficult selling and buying at the same time. You don’t want to have to accept a lower offer on your departing residence just because you need the funds quickly to close on your new home. You also have less power in the negotiations, because “contingent” offers are considered to be weaker than a “non-contingent” offer. Even moving from the old home to the new home can be difficult if both your sale and purchase happen simultaneously.
Advantages:
More negotiating power on your purchase.
More time to accept the best offer on your home sale.
No rush to sell.
No rush to move.
One transaction at a time.
Lots of options once your home does sell (recast or refi and lower the loan amount on new home)
Ways to be non-contingent on the sale of your departing residence!
Financing solutions are available that enable you to buy before you sell. A lot of people can qualify for the new purchase while holding both properties. Then once your home sells you can do a principal reduction on your new loan with your sale proceeds. Self-employed and retired buyers have a high likelihood of qualifying for these options. If you have a lot of equity in your home, a bridge loan might be a good option for you as well. Find out if being non-contingent is possible for you with the link below.
