You're ready to
buy your next home. There's just one thing standing in your
way - you haven't sold your present home. What should you
You may have heard
others say they made a purchase offer on their next home contingent
on the sale of their present home. This means that if their
offer is accepted, they are not obligated to complete the
purchase if their present home doesn't sell. Sounds like a
good way to proceed, doesn't it?
But, wait! Why
would sellers ever agree to such a tentative purchase offer?
Think about it from the sellers' viewpoint. By accepting the
offer, the sellers are obligated to hold the house off the
market while waiting for the buyer's home to sell. The seller's
problem, however, is that the buyer's home may not sell.
In other words,
the sellers may reason that if it is necessary to wait for
a home to sell, it might as well be their home (not the buyers').
At least the sellers have some control over the sale of their
own home, while they have none over the sale of the buyers'
offers are commonly accepted by sellers, a "clean"
sale and purchase are usually the best approach. Sell your
home first, giving you a clear picture of your financial abilities,
and then purchase the perfect home without contingencies.