Are you trying to sell your home and buy a new one at the same time? When it comes to contract negotiations, it’s likely you will need a sale and transfer contingency. Learn more about this process and why it’s important to understand in our current market.
2022: A “Seller’s Market”
Our area is experiencing a “Seller’s Market”. This means there is an excess of buyers and a low supply of homes to purchase. As a result, it’s likely you will receive a variety of offers when listing your home. On the other hand, as a buyer, there is a lot of competition and few homes to choose from.
Most people need to sell their homes in order to have the finances available to purchase. This means both the sale and purchase transactions need to take place at the same time so they can close simultaneously.
Sale & Transfer of Title Contingency
When writing an offer on a new home, you will need an addendum stating your purchase offer is contingent upon the sale of your current property. This is called a “Sale and Transfer of Title Contingency”.
If you have already listed and are under contract for your sale, you must add any other contingencies of that particular deal on this contingency addendum. If your current home is not yet under contract, you will provide a due date. If there is not an accepted offer on your house by this due date, the sellers can cancel your purchase contract. An experienced agent and real estate attorney can help you navigate this process successfully!
Lining up the Closings
The date listed on either of the contracts is a target closing date rather than a scheduled date. New York is unlike other states when it comes to buying and selling property. Here, we have attorneys handle real estate transactions from start to finish rather than just using title companies.
In a single transaction, there are three attorneys who need to work together to get a free and clear transfer to the new owner. Therefore, there are even more moving parts when both buying and selling. An official closing date won’t be scheduled until the attorneys and lenders are ready for both transactions. This can be a tricky and sometimes frustrating process but allows for a smooth transfer from one home to the next.
If you have any questions whatsoever please reach out to Crane Realty today. You can also check out our YouTube Channel for additional information, and watch Agent Mike Crane’s video for more information about buying and selling in our current Market!
Here are some other useful articles with tips for anyone looking to buy a home:
First Time Home Buying: A Beginner’s Guide
What Are Delayed Negotiations?
Your Questions Answered: Our Best Tips For a Successful Home Offer