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I would go with a different agent and agency all together. Sounds like they are trying to strong-arm you into listing with them and I personally feel that someone who acts in such a manner is never going to have their client's best interest at heart.
So if we sell our house first and negotiate a 60 day close, we have 30 days to buy a new house and negotiate a 30 day close? And if are unable to find something in such a low inventory market, there is no way to back out of the sale of our current house without penalty? So we would then have to quickly find a rental. Is that correct? Seems so risky to me.
Really and indeed risky.
You say you now have kids. I would want to have a fer sherr roof over their heads before I sold the roof they have.
Our realtor knew this plan and started to show us houses. We went out one time and found something we liked but decided last minute that we didn't want to place the offer. The next day, our realtor's boss called and said they are no longer willing to show us houses unless we list AND sell our house first.
perhaps additional commentary/explanation would clarify, but this interaction sounds absurd ... at least in my neck of the woods.
"they are no longer willing" ... they is your agent? they is the team the agent's on? they is the brokerage?
I can only assume you got this far without signing any representation agreement. And I'd be surprised to find out, even if you did, that it had any kind of language per above.
So if we sell our house first and negotiate a 60 day close, we have 30 days to buy a new house and negotiate a 30 day close? And if are unable to find something in such a low inventory market, there is no way to back out of the sale of our current house without penalty? So we would then have to quickly find a rental. Is that correct? Seems so risky to me.
Most accurately, if you sell the house and have a 60 day close, you now have a close date for the new house too, whenever you find it. The earlier the better. Your lender can help coordinate the two, but the clock is ticking.
There is some risk. The level of risk can be weighed by how rare the thing you're looking for is, and how particular you are about the details of it. All decisions to be discussed openly and clearly with someone who is trying to inform you of the options, not push you to one they like best. You need to feel like you're being advised honestly and realistically.
on the point of buying and selling, contingencies, etc ...
You can also chat with a lender to see how you might, or if you can, qualify for a bridge loan. You're generally able to execute a buy (no contingency) and sale and dual close ... especially if you get a 90 day close on the buy.
perhaps additional commentary/explanation would clarify, but this interaction sounds absurd ... at least in my neck of the woods.
"they are no longer willing" ... they is your agent? they is the team the agent's on? they is the brokerage?
I can only assume you got this far without signing any representation agreement. And I'd be surprised to find out, even if you did, that it had any kind of language per above.
We emailed the agent that sold the house next door. She assigned us a realtor who works on her team. That realtor met with us in person and we discussed the fact that we wanted to put in an offer on a house with a contingency and not sell ours first. That we did not want the pressure of having only a few weeks to find another house in this market. She said it was very common to include a contingency with an offer. She started to show us houses. We wanted to place an offer on one that we saw and scheduled the listing/open house for our current house. However, we decided not to offer on the house and said we wanted to hold off on listing our house until we found another house to offer on. Main agent then called us and said that no one will entertain a contingency and that they would not show us houses until our house is listed and has an offer. ((So maybe I misstated earlier. She wants our house under contract first. Which is different than sold. Sorry if I misled.))
Anyway, so now we are a little stuck, wondering if this is all worth it.
on the point of buying and selling, contingencies, etc ...
You can also chat with a lender to see how you might, or if you can, qualify for a bridge loan. You're generally able to execute a buy (no contingency) and sale and dual close ... especially if you get a 90 day close on the buy.
We have excellent credit but are using a VA loan so that complicates things. We need to sell/buy same day and cannot carry two mortgages. I expect we will have a sizable downpayment with the sale of our current house so we are using that towards the new house. I am not sure about a bridge loan but definitely something to research!
if a lender won't approve you to (potentially) carry 2 mortgages, then it would be a moot point.
In your situation, SOMEONE has to take the risk. With any sale contingency (even when you're under contract), you're asking the Seller to undergo that risk.
When you line up bridge financing - even if you don't eventually use it - you are taking on that risk.
On the subject of risk, it is always better to undertake your own risk, since you're the only one who has any control over it. The Seller cannot know for a fact that
a. your house is ready to go
b. your house will be priced to sell
c. if provided a reasonable offer that's not exactly what you want, that you'll accept it.
Now, you may be able to overcome 1 & 2 with photos, etc as part of your contingent offer. You just have to put on the Seller's shoes, and compare that risk to any other offers they have get - or are willing to take the risk they get during your contingency period - that entail less risk from a Buyer to them.
On the subject of your Realtor interaction .... the team lead likely handles listings only. You were very likely handed over to a Buyer's Agent, and usually these are less-experienced agents who are more enthusiastic than experienced. Of course, if you wanted to see houses, she was going to show you houses. Sounds like it was only after recapping/chatting with her team lead that she found out the likely realities of the market - very few contingent sales offers are accepted. They certainly should have gone about it better, but consumers should know what the team's structure is, and who the players are, before getting involved with many teams.
It is a market reality in hot seller's markets - multiple offers on homes within a week - that a "contingent on sale" is a no-no, and a "contingent on closing" does involve some level of risk, especially when weighed against other offers.
Main agent then called us and said that no one will entertain a contingency and that they would not show us houses until our house is listed and has an offer.
I know nothing about your area so I could very well be way off base here but I call BS unless all the agents in the area have conspired with their sellers to say no to any contingencies.
If I were you, I would go to Zillow, use their Agent Finder tool, and look up a few of the top agents for seller agents, write those names down, and then do the search over for buyer agents, and write them down. Do the same for the zip code you are looking to buy in and also the one you want to buy in. See if there's any overlap between the two counties in case you can get lucky with finding an agent that has done a lot of business in both areas. Then call up whoever you come up with off that research and explain your situation to them and ask them their thoughts on the situation. Then go with the one who will represent you on your terms of accepted offer first, list later.
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