One of the best things about being a real estate broker is seeing clients make a decision that deep down, you know is right. A young couple married for a couple years that are ready to buy a home together. They have lived in the home Carol purchased as a single woman but decided that their current home was not going to be an ideal situation for their next step, having children.
Having a house to sell in today’s market is generally a slam dunk but the common dilemma is what options do they have once they decide to list the house, get an acceptable offer and heads towards the closing? Seeing several re-sale listings online go under contract in a matter of days was an eye-opener for them. Most people think you can simply see a few houses, pick one out, write an offer, get it accepted and then list your current house. NOPE! I had to explain to them that sellers rarely accept contingent offers in this market. They don’t need to. The challenges of getting a contingent offer accepted without having a pending contract, let alone not being listed yet is going to be an issue for every seller. It was time to show them the options available to them with new construction.
Builders don’t rely on one single transaction like a re-sell home does. Until they get down to the last few homes in the subdivision, they are generally interested in seeing how a deal can be put together (including home sale contingencies). After all, at various times throughout the development, they have available now inventory homes, homes that are in the finish stage, homes that are in the framing stage and homes that have not even come out of the ground yet. Turning people away for having a contingency on a home that may not even be available for several months is just bad business. For this reason, they allow contingencies and are eager to work with you. Some builders don’t care when or how you go about selling your current home so long as they know you’ll be closing on or before the day they are ready to close with you. Some will require regular updates on the sale of your home or set date for having your home closed.
Who doesn’t like touring model homes, right? Of course, the easy part is dreaming about the incredible granite slab you would like in the kitchen, the high-end cabinets and the luxurious wood floors throughout. The hard part is knowing that you have financial limitations and most builders offer a basic package of formica countertops, standard cabinets and anything but real hardwood floors.
The model homes are a trap, a psychologic attempt at separating you from your money
p style=”text-align: center;”>Disclaimer: This is a documented journey for the typical coming out the ground new (pre-foundation) construction buyer. Not all scenarios will be the same.