i heard when i go to sell my house i can put in a constigency that gives me time to build my other house?

Question

for example 3 months, is this true?

Answer 1

In 20+ years of selling homes I have only witnessed a few seller leasebacks after closing. Most of those were sales to investors that were buying the homes to use for rentals and bought them at a discounted price. You can stipulate occupancy after closing but most buyers ( 99.9% ) will want closing plus 3 days at the most. Upon closing is the most desired and you might make the best buyers extremely reluctant to make an offer with your contingency. A bridge loan can help remove such, the discount most buyers will need to see is way more costly than renting somewhere else while your home is under construction. Another issue can be the buyers loan might require them to be owner occupants from the day of closing. The lender will require a copy of the ernest money agreement and see your contingency. If you lease back and the lender thinks you could refuse to move in the specified time frame, their underwriters could refuse the loan. Last thing I will point out is that many have no idea when a deal is considered closed. When you sign at escrow that is signing, NOT Closing, your deal is considered closed after what was signed at escrow has been recorded and reviewed, then funded. Key word here is funded, when funds are available to the seller is when your deal is considered closed. In the case of your contingency the lender could also do a escrow holdback until you are out of the home which again would be risky for you and the buyers. When your new home is about 45 days from receiving the occupancy permit start the selling process on your current home. If you are in a slow market increase the timeframe accordingly. You can always ask for whatever contingencys you want to an extent, but whether the market will give them you, is quite unlikely in most cases.

Answer 2

I am sure you can put this type of contingency in the paperwork, but only a fool would buy a house from you. It takes a long time to build a house. the longest escrow I have heard of is 90 days in California, but this might be different in other states or countries.Be careful what you ask for, you might never sell your house.

Answer 3

You can put any legal request in as a contingency to a sale. However, the more contingencies, the harder it is going to be to find a buyer.

It may be in your best interests to look into temporary housing in your area. There are many apartment communities that will rent a furnished apartment on a monthly basis. You can put your belongings in storage until your house is built.

Answer 4

yes, you can put contingencies in the listing, just as the buyer can put contigencies in the offer. it makes it less desirable to the buyer though, if there are two comparable houses they are going to want the one without a contingency. People looking to buy a house aren't normally willing to wait 3 months to move in. Mabye you should wait on listing the house or find a month to month rental.

Answer 5

You can do that, but it may be impossible to sell your home with that contingency. Most buyers want possession at closing -- and you probably don't want to pay rent on your home once it's been sold and until you move. That rent will be based on what the buyer is paying on their mortgage and could be a LOT more than your current mortgage payment.

Your better bet would be to get a bridge loan on your current home and put it on the market once your new home is ready.