Most people don’t want to live somewhere temporarily after selling their home before moving into their new home. So what can be done avoid a period of displacement and inconvenience?
Here are a few tips you need to know when selling your California home while simultaneously buying your replacement home. It’s important to know some definitions too. The “down-leg” home in the transaction is the home being sold. The “up-leg” sale is the replacement home being purchased by the seller of the down-leg home. OK, now that we have that out of the way, let’s get back to the tips.
1) It Can Be Done
Contrary to what many believe, it is possible the sell your home and buy your replacement home at the same time. It’s takes a lot of work and planning, as well as the cooperation and coordination of all parties involved.
2) Seller’s Contingency
When you sell your house, you can include a contingency for yourself that clearly states that the sale of your home is contingent upon you finding a replacement home. In other words, you could be in escrow with a buyer, yet be unable to find a suitable replacement home. Should that be the case, you have the right to cancel on your buyer if you have the contingency.
If you don’t keep a contingency for yourself as the seller, you could be forced to sell your home even if you don’t have a place to go.
3) Buyer Contingency on Up-leg Home
If you are like most homeowners, you need the equity from your down-leg home in order to complete the purchase of your replacement home. In that case, you will need to keep a contingency in place that protects you in the event that your buyer does not successfully close escrow. This contingency allows you to back out of the replacement home up until the moment your home sells.
These two contingencies serve to protect you when you are in the process of selling your home and buying another. It is imperative that your agent understand the time frames and the rights of the homeowner when you are in the situation so that you are protected from losing your deposit or worse, end up homeless because you were forced to sell your home even though you could not find a replacement home.
We have worked with dozens of happy homeowners who successfully transitioned from one home to another simultaneously without being displaced. If you have additional questions about the process or would like our assistance, we would love to help you.
::: Aaron Zapata :::
Aaron Zapata is a top-producing Real Estate Agent in Southern California and Broker-Owner of IMPACT Properties, Inc. He holds an MBA from Cal State Fullerton and a degree in Biblical and Theological Studies from BIOLA University. As a practicing Broker and Certified Residential Specialist (CRS), he has closed over $150,000,000 in sales and can identify with the current trends and difficulties agents and clients have. IMPACT Properties is recognized as a leading real estate firm in Southern California with offices in Orange and Los Angeles Counties. If you’d like to contact Aaron or one of the IMPACT agents about selling or buying a home or improving your real estate career, you can email Aaron@ImpactProp.com or call (714) 660-2122. He’d love to hear from you.
IMPACT Properties is a premier real estate company located in Southern California with multiple offices in Orange and Los Angeles Counties. Their professional REALTORS® service home sellers and buyers with buying and selling homes, condos, land, apartments, and commercial properties all throughout the area. For more information you can visit www.ImpactProp.com.