That is the challenge but what is the answer? Historically, in a confident marketplace when buyers want to buy a new home, they find it, and put in an offer. Then put their home on the market. They price their home to sell and within 60 to 90 days everything complete and everyone is happy.
Currently in this market place this method is not working. We have experienced a slow down of offers on properties during our normally active market time, and we now have increased inventory that directly effects value. Buyers won't buy until they sell. They won't even put in an offer with a sale of home contingency. Why not? Don't know how or didn't know you could? It's how you protect yourself from owning two homes?
Bill Crane of CFCU stated today that the biggest challenge they have seen for their clients this year is not credit issues, or a lack of loans available but rather their clients have a home that needs to be sold first. Their homes are either outside the Ithaca market place, or in town and they do not want to be caught with two mortgages.
A good Realtor knows how to write an offer with a sale of home contingency and protect their buyers. A better Realtor knows how to get it accepted. The best realtor will explain it to the seller, advocate for this contingency, will create a WIN/WIN for both the buyer and the seller and see it through to closing. There are many aspects of this contingency that need to be carefully examined and negotiated. Ask questions, if it doesn't make sense ask again.
Currently for October 2008 there have been 66 homes that have had an offer on them. That's alot for Ocotber. 93 homes have made it to the "funding in place ready to close" status. That's great news. However, there are only 5 homes in a sale of home status. This could help everyone, if you are in this dilemma, and don't want to lose out on the opportunity to get the home you really want ask about this contigency.
To find out what it happening in your world of real estate ask a RE/MAX agent, we know our market and we can help you to know yours.
Melissa Miller Broker Owner
