Guest Blogger-Mike Johnson
Well it’s moving time again, that’s right- Summer is on the way and we are starting our annual migration.
Kids are finishing school and Mom (or Dad) has an established beach mindset or maybe even a new job in another city. Quick …who’s your Realtor? It had better be someone who understands the market and the actions that influence residential property valuations.
Using a Realtor without those skills can be much more painful than when you missed your target and fell on the ground playing musical chairs. This environment of very tight lending restrictions is causing a game of musical chairs with lenders. We’ve all seen the advertisements that herald how available mortgage money is, and yet, the amount they have set aside to loan residential customers is much less than what is needed to fill the current demand. This is causing strain even among purchasers who have very good credit.
It is often the scenario that one house cannot be purchased until your first home is sold. This is the time of the contingent sale, a catch 22 wherein to qualify for the house you want or need, you must first sell the home you already own. Yet again there is the opportunity for lenders to turn on the music, make offers and promises, only to yank the chair away at the last minute when deadlines are up and contracts expire.
What is the most important variable you need to know? Value.
As a buyer-you need to know how to sell your existing home quickly and for the highest payout to apply toward your new home investment.
As a seller– you need to know that the asking price of your prospective buyer’s first house is priced appropriately to achieve your selling goals, before you accept a contingency offer on your home.
It is critical that you engage the services of a Real Estate company with deep residential valuation experience that can help you decide if the Contingency Contract is a good deal, or one you should avoid.