This is a big issue today with sellers of real estate that are selling to downsize, move up or relocate. How is the inventory of homes for sale in the place they are moving to? What about the types of offers that those sellers are willing to accept?
Are they willing to accept a contingent buye? That is a buyer that has a home to sell before they are able to buy another.
What about those “contingencies” that have a buyer needing to sell to close the new purchase, at exactly the same time? Read another story about real estate contingencies on our REMAX Relocation blog http://relocation.paris911.com/interesting-thing-about-contingencies/
What if that seller had to close their home at the same time as the one they were purchasing?
You can see how “deep” a single real estate transaction can get. We have had transactions as deep as 8 levels.
We represented a Buyer of a home. That seller, that accepted our buyers offer, was buying a home and those sellers were needing to close at the same time as the home they were buying…. This went on for a total of 8 contingent levels.
What happens if the buyer/seller at the 4th level lost their job? What if their buyers failed to continue escrow? It would all come down like a house of cards, if the 3rd level could not continue forward. Causing Levels 4, 5, 6, 7 and 8 to stop processing.
However, it is very rare that anypart of a real estate dealing, that complex, would be able to continue without the other buyers/sellers that are involved.
The biggest question today when we are sitting with our Real Estate Sellers comes in the form of, “If I sell my home, will have another to purchase?”
Getting a Sale contingent on finding another is not the “flavor” of the day in the current market. There is enough inventory to look at, and purchase, that do not have a contingency of this type.
However, that could change at any time. We have seen real estate markets turn on their heads in a two week period.
To Monitor the Real Estate Market go to TopHousingNews.com and see our latest article.
We have a local Radio Show that pertains to Real Estate in the Santa Clarita Valley for Savvy real estate buyers and sellers go to Paris911.com and click on the play button.
Thanks for reading, sharing and listening to our local Valencia and REMAX Real Estate radio show.