How to Get Ahead as a Contingent Buyer

San Diego Real EstatePodcast with Max Folkers

If you need to be a contingent buyer, there are still a few things that you can do to set your offer apart.

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If you have to sell your home before buying your next home, you become a contingent buyer. Many people find themselves in this situation, and many are also nervous about selling their house before they have the next one bought and lined up. They worry they won't be able to find a home they're excited about.
When figuring out your situation, you have to consider price and terms. Check out the video above for a graph that visually explains how the better the terms are in your offer, the better the price you can expect to pay. For example, if you offer a fast close and an all-cash offer, you will probably get a better price.
If you're a contingent buyer, you're a big unknown to the people selling their home.

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As a contingent buyer, the closer you are to selling your current home, the better.

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Since your terms won't be as good, you'll have to pay a premium for the home you want. If you make an offer contingent on the sale of your house and your house isn't even on the market yet, your offer will probably go into the seller's trash can. If your house is at least on the market, your offer becomes more attractive to a seller. If it's under contract, it's better still. If you get to the point where you're a contingent buyer but your house is under contract and ready to close in a week, it's as good as a standard non-contingent offer.
Basically, as a seller you've got a lot of leverage right now. This means you can extend escrow a little bit if you need to or arrange a leaseback agreement so you don't have to move twice.
If you have any other questions about buying a home contingent upon the sale of your existing home or about anything else related to the market here in San Diego, give me a call or send me an email. I'd be more than happy to help.