What Is A Contingent Offer And Is It The Best Choice
For someone who is buying and selling a current home the real estate market can be a tough market to figure out. There are many different terms that are often used that many of us do not use on a daily basis. One of these terms is a contingent offer. It is important to know what you are speaking of before entering into the housing market. In this article you will have a contingent offer explained to you and you will be able to decide if this type of an offer is the best for your financial situation.
What Is A Contingent Offer
A contingent offer simply means that a person finds a home they wish to purchase but their current home is still on the market. This purchase would only be able to happen if the home that is for sale is purchased. Therefore, the purchase of the new home is contingent on the sale of the home they currently own. Many people believe that this is the best way to go.
Before Searching For Your New Home
Before you begin searching for your new home you should understand that buying a home is much easier than selling your current one. You should put all of your time and energy into selling before buying. The first step here is to get your current home on the market. Once it is on the market that does not mean you should start your shopping. You should give people the chance to view and tour your home and get some feedback about what people think. Once you start getting positive feedback you can then start your search because your home sale is probably not that far away.
Should You Accept A Contingent Offer
There are many realtors and professionals that frown on accepting a contingent offer on the home you have for sale. The reason behind this is because when a contingent offer is accepted other realtors are made aware of this. Therefore when they have clients who are looking at homes they will steer them away from yours. Even though people can still make an offer on your home there will be less traffic viewing the home.
When Should You Start Shopping For Your Home
Once you have people giving you positive feedback and you and your realtor feel that you are getting close to selling you can then start your home search. You should look at many different houses and find the house that will suit you and your family perfect. You should not fall in love with the first house you see. If you do find a home and your current home is not sold yet you should probably not put in a contingent offer. The reason behind this is because a contingent offer is usually for a higher amount that a non-contingent offer and of course if you have that offer waiting you may be forced into selling your home for a lower amount just to get it sold.