Lake Ridge Virginia Real Estate Help For Sellers and Buyers: July 2010

Yesterday, someone asked me a question and I thought maybe I would help explain this to you as well.

My response:Yes for the most part, that is true, at least here  in the Prince William County Virginia area.

Caller:"Well how the heck do we sell our home? We can't move the kids, the dog, and everything we own into storage! How do other people do it? We want to take advantage of the low interest rates and  it has become very clear that we can get an awesome home. But I don't know how people do it. Can you help us?."

My response: It would be my pleasure!

For you who don't know what a contingent contract is.

Contingent Contract: this is where you purchase a home contingent upon the sale of your home. Once your home settles you then can settle on the next home.

Currently here in Prince William County Virginia,Builders and Local Homeowners are not interested in taking Contingent Contracts.

Why?

Several Reasons:

1. New Home Builders will not begin constructionuntil your home is Under Contract. However it takes 120 days or longer to build your new home depending on the lots available. So that could mean a temporary move. Coordination is key.
2. If you fall in love with a Short Sale home,homeowners typically will not entertain a contingent contract even though it could take 3 to 8 months for the third party ( the bank to approve the sellers short sale).The reason is you the buyers must be prepared to close when the approval is granted otherwise the seller could go straight to foreclosure. Most sellers in a short sale situation typically will not take that risk.
3. Bank Owned Homes/Foreclosure Homes: Banks are not in the business of owning real estate. Time is money to them. Banks prefer to close within 30-45 days. Competition is still brisk since Foreclosure/Bank Owned homes sell for up to ten percent less than Fair Market Value.

The homeowners I spoke with yesterday felt as if their hands were tied. However with some good coaching and explaining all their options we can help them design a plan to help them attain their goals. No matter whether you are downsizing, relocating or just moving to a larger more functional home Erick and Company can help you.

How?

Step 1.  We suggest you talk with a loan officer to learn what your buying power is.

Step 2.  Make sure you ask if you can qualify for both the new home payment until your home sells.

Step 3. If you cannot rent or qualify for holding your home or renting it. Then it is time to list your home for sale. Don't panic...we have ways to help you attain your goals.

a.) We can can add a clause that home sale is contingent upon sellers Finding Home of Choice. This will give you typically 7-10 days to find a house after all parties hammer out the terms of the offer.

b.) We can add a clause into the MLS System that states seller will need a a Post Occupancy Agreementfor up to 60 days. This clause allows you the seller to remain in your home as a tenant for up to 30/60 days depending on what you need to settle on your new residence.

All of this may feel overwhelming to you.I know. However an experienced Realtor such as myself have assisted many homeowners with the coordination a selling and buying. It is what we do. We help, we coach, we solve your real estate challenges. We have tools, knowledge, skill and the ability to make your dreams a reality. All you have to do is pick up the phone and start asking questions and all of at Erick and Company will help you every step of the way.

If you need help just call me or contact me by email