Methods for Buying and Selling Simultaneously~(best done in a so-called ‘buyer’s market”) PART 3
Seller Locating Replacement Property Contingency
What? A seller contingency? You mean the seller will only complete the sale of their home when and if they find the home of their choice? Does not sound feasible, right? Well, I’ve done it. However, this will not work without a number of circumstances in play. The seller’s home has to be fully inspected, (no surprises), marketable, and priced well. Add a superior marketing campaign, and the result should be several prospective buyers.
Why You’ll Need Multiple Interested Parties
Many buyers and their representatives will not be able to “get their arms around” this Seller Contingency idea. Fair enough. The most talented of seller’s representatives will not be able to make some buyers feel comfortable waiting for the seller to buy a home. Yet, only those skilled negotiators will be able to sell the idea to a buyer, and behind the scenes, the their family, friends and representation.
Buying and Selling Simultaneously with the Same Licensee
Only a skilled licensee can confidently communicate a solid list of actions needed to complete a home search and two concurrent transactions. When a serious buyer feels the likelihood of a positive outcome, they’ll begin negotiations to purchase the seller’s home.
Seller Contingency Price, Terms & Conditions
In a seller contingency, the buyer is moving forward on a purchase and incurring costs along the way. The buyer needs to be compensated should the sale not go through. A dollar amount needs to be agreed to upfront. These sellers are more than willing to cover the buyer’s out-of-pocket expenses, vs selling their home outright and possibly being financially locked out of a housing market.
Pat Kapowich, “Negotiating Smooth Transactions Throughout The South Bay” SiliconValleyBroker.com