We have a lot of real estate sellers who want to sell their home and want to buy another one. Closing both transactions, their sale and their purchase, at the same time.
While this happens in Santa Clarita real estate day in and day out, sometimes it’s not as easy as it might seen.
There are rules which we must abide by to protect our home sellers and our Santa Clarita home buyers, which in this case, are one in the same.
The rules for home sellers who want to buy
The best possible place to be is where your home buyers have removed all of their contingencies.
All of them including the following:
The loan the buyers are getting
The appraisal of the property your buyers are buying (your property)
Buyer’s physical inspection (waiving what the home inspector discovered related to your home)
All Buyer investigations other than the physical inspection, which is mentioned in number 3
Condominium/Planned Development (HOA or OA) Disclosures
Title: Preliminary Report
Sale of Buyer’s Property (this happens more often than you think)
Review of documentation for leased or liened items (solar etc..)
And there are fill in the blanks for anything which can be come up with
After your home buyers have removed all of these contingencies, you are ready to make an offer.
If you want to make an offer before your home buyer’s have removed these contingencies – be aware that you may be paying about 1 grand for your believing that they are going to go the distance.
The fees you may be paying have to do home inspection and appraisal. If the home you are buying does not make it the distance, you will be responsible for these two fee’s out of pocket.
As far as your deposit, you have 17-21 days to remove all of them, per contract, if nothing has changed. To get this money back the seller has to agree. If they don’t you may be subject to litigation by the home owner on the home you are buying.
Or you may have to go after the seller to make your deposit refundable.
While this “litigation” does not happen often, due to the property not being able to sell to a new buyer until the “past issues” are resolved, and the sellers not wanting to waste the time, it does happen.
In most cases, the removal of your contingencies, the buyer wanting to buy the seller’s home at the same time your home is closing, will be sealed when you “sign a written removal of contingencies”. As stated that happens between 17 and 21 days if nothing has changed within the contract you agreed to.
Simplification of home sellers wanting to buy
The best position for you to be in, as a home seller wanting to buy real estate and close at the same time, is where you have your own buyers which have already removed all of their contingencies before you sign a contract on the home you want to buy.
If they change their minds after this, in most cases, they forfeit their deposit for your home and it becomes yours. (subject to potential litigation, of course)
This is the best place to be as a home seller who wants to buy another home. While sometimes we are able to enter into contract with legaleze which will protect you, most times it’s countered out by the other homeowner(the one on the home you want to buy), or other offers come in which are not contingent.
Thanks for reading some of the reasons why a Santa Clarita home seller should take pause when wanting to buy a home before their buyers have removed their contingencies 100%.
I’m Connor with HONOR and I’m always glad to be of service to you and yours with all of your real estate needs in Santa Clarita Valley and Beyond.