Ask A Real Estate Agent
By Brian Teyssier,
Should you put an offer in on a home before you sell your home?
It is completely possible to put in an offer on a new home before selling your existing property. However, there are a few scenarios where using a contingency to get out of the deal may be necessary. If you choose not to proceed with the purchase, you may lose money. Additionally, you may forfeit your earnest money if you are too far into the deal and contingencies have passed, and you want to keep your old house.
The decision to buy a home before selling your current one depends on why you want to do so. Whether it’s to take advantage of market conditions, secure your dream home, or simply have a place to stay while you sell your current property, it’s essential to carefully consider the implications before making a decision.
Making an offer before selling happens a lot. Sometimes people just want to move within the same zip code yet don’t want to become homeless in the process. There are many more short-term living solutions out there now. Hotels, or short-term rentals like Airbnb, may offer discounted rates for longterm stay. Often, the buyer will want to get thorough inspections before making an offer which provides time to get their own home ready to list.
To protect yourself and ensure that the new home purchase goes smoothly, it is crucial to get it on a contract. This contract should include provisions that address any potential issues that may arise during the inspection process. With a newer house, inspections typically go smoothly, and any issues that are found are usually minor. However, it is important to note that inspections are not foolproof and unexpected situations can occur.
Older homes in Pittsburgh might have difficulty during the inspection process, for example; failing a sewer line camera test could cost upwards of $7,000 in repairs. While that’s not ideal, you can write in your offer that the “Buyer will cover anything under $2,000.” The amount depends on the sale price of the house. Consult with your real estate agent on putting an offer in while still owning a home.
One crucial aspect of getting the contract right is ensuring that the agreement includes clear expectations for any issues that may arise. This could include requirements that the seller fixes certain issues or offers a discount on the purchase price. By ironing out these details in advance, you can minimize the risk of encountering significant difficulties in completing the purchase of your new home.
During that process, I would list my client’s home. There are a variety of options out there to consider moving forward. I stick to listing the home just below market value with minimal limitations. Disclosures are different and mandatory, like lead-based paint. Say, your new home purchase will keep you from moving out of your old home for 60 – 120 days. That’s a limitation to work around as part of the negotiation with your buyer’s offer.
Now, you might be thinking, “Wait, list at below market value?”. Yes. It will open up multiple offers in time and this point can be tough for sellers to understand. When a seller has multiple offers, they have the power to control the transaction and manage the closing outcome to suit the needs of their own move.
In conclusion, it is possible to purchase a new home before selling your existing property. However, careful consideration should be given to the potential consequences and potential financial risks associated with this decision. By getting the contract right and addressing any potential issues, you can minimize the risk of encountering major difficulties and make the process smoother.
If you have any questions about, should you put an offer in or could you put an offer in on a home while you still own a home, whether it’s on the market or not on the market, feel free to contact me by email or directly on my cell. Give me a call, text, or DM me on Instagram @brian.sellspittsburgh. Looking for more information about buying and selling in Pittsburgh? Visit my YouTube channel for more tips and insights www.livinginpittsburgh.us.”