A few viable options to give to your clients who need to buy first.
Do you ever struggle with helping clients who need to buy a home first before they sell their current one? This can be a tricky thing if you aren’t prepared, so we are here to help you with that. Right at the beginning of your time with them, make sure you work to understand their situation. Set up a time to meet with them and be prepared to present them with different options.
The first option we want to highlight is a home sale contingency. That is essentially letting the seller know that your buyer has a home to sell and they won’t be able to move forward until that home is under contract or sold. The risk is that the offer may not get accepted because there’s a contingency. However, in today’s market, sellers are much more flexible than before.
Another option would be a bridge loan. This entails the buyer talking with a lender and setting up financing to take out a loan on their current home, then there’s no contingency for the seller. The risk here is that they may have to pay two loans at the same time, so they should be prepared if they choose this option.
“Make sure you work to understand their situation.”
Those are the two main options that have been used in the past. However, recently there have been a lot of startup and tech companies that have come out with a few alternatives. One example of that is Ribbon, and they have several programs. The easiest example is paying a percentage of the value. They can purchase your buyer’s home, but the buyer would have to pay a fee for that backup. Ribbon also offers programs where a buyer can rent from them, which gives that buyer more time to sell, and we’ve had clients do this.
Overall, just know that if your client needs to buy before they sell, they have options. If you have any questions on this, don’t hesitate to reach out! You can call or email us anytime.
