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Im selling my house and at the same time im buying new one.
I already got offer for my house and I accepted it. (got asking price)
Buyer got pre-approved conventional loan with only 7k down (loan is for 230k).
I also found new house and my offer got accepted.
Now here is the problem.
My agent wants me to do home inspection for my new house before the buyer of my house does it.
Also my agent wants to do everything fast when it comes to my new house (loan, appraisal... ).
I can not buy new house without selling my current home .
Im worry about something will go wrong with my buyer (my house will not appraise , he will not get approved for loan, home inspection will go wrong...) and buyer will cancel at any time...
My agent does not seem to care about that and im worry I will waste my money (around 800-1000 $ total) for home inspection and appraisal for new home if my current home does not sell.
I want to wait until home inspection and appraisal of my home is done, and only then proceed with my new home.
But my agent is saying its not good idea.
Is he right?
He is right. It's a long process with strict timelines and needs to start asap. If you wait too long for an inspection you risk losing your window. Get on it or you shouldn't have put in an offer yet.
Of course it seems logical to wait until the buyer of your home gets everything done on their side, but most likely you'll run out of time to complete time sensitive things on your new home. What's your due diligence? If you pass this date, your out your escrow money, and possibly even more (think inspection, repair request, etc).
The appraisal usually comes past the due diligence in most cases.
You may have to fork out the inspection cost first, you'll know by the end of the inspection if you want to proceed and dive into more (appraisal, etc).
I also, sold and purchased a home on the same date.
Your agent only cares about his commission., You need to worry about yourself. Do not go into contract on another home without selling yours first, meaning closing and turning over the keys. You can put a contingency on a home you want to buy that you need to sell yours first, but the seller may decline that offer if there are better ones. You do not want to get stuck owning your own home and paying those bills are well as owning another home you just purchased.
Your agent only cares about his commission., You need to worry about yourself. Do not go into contract on another home without selling yours first, meaning closing and turning over the keys. You can put a contingency on a home you want to buy that you need to sell yours first, but the seller may decline that offer if there are better ones. You do not want to get stuck owning your own home and paying those bills are well as owning another home you just purchased.
My agent does not seem to care about that and im worry I will waste my money (around 800-1000 $ total) for home inspection and appraisal for new home if my current home does not sell.
I want to wait until home inspection and appraisal of my home is done, and only then proceed with my new home.
But my agent is saying its not good idea.
Is he right?
no, he is wrong, your agent is not worried about you only about getting their commissioin. Do not proceed, do not hurry the process, it's better to lose $1000 than to be in a nightmare of owning 2 homes, when you want to sell one and buy another. Anything can go wrong, so not rush. Your agent does not have your best interest at heart and if he keeps pushing you tell him he will be reported.
In your contract for the new house, there is a window for due diligence. If that date passes (I think it's ten days after you sign your contract) and you have not done your inspections and appraisal, you cannot easily back out of the purchase if there is a problem.
Did your buyer sign the contract for your house before you signed the contract for the house you want to buy? He's on the same deadlines as you.
Maybe you can find out when your buyer inspections are and have your inspections scheduled for 2 or 3 days later. Does that give enough time for the due diligence on the home you're buying? And yes, start the loan process yesterday. They can hold the appraisal if you ask them too.
Why are you concerned your home won't appraise?
Disregard SO's post. It's a trolling post because he/she thinks all agents don't care about their clients. I see nothing concerning about your agents behavior from your post. They seem to want to make sure you're able to close both properties seamlessly.
So your contract on the house you're buying says something like 'contingent on the sale of whatever', right?
And your purchaser is still within his short due diligence period as are you, right? But seems like he would be slightly ahead of you since that contract came first.
Contracts I'm familiar with call for dates for the home inspection to be completed by...5 days or a little more after signing. These days the inspector can do it on his preferred device and send to his customer quickly. Is this the case for you?
As far as waiting for your buyer's appraisal to be done before you start your due diligence....you'd be outside your due diligence period for one thing.
What happens if the buyer of your home is quicker than you and ready to close well before you are ready to settle on your home? Will there be a risk of your buyer losing his rate lock because you are not ready to move out of your home?
Your agent is looking after YOU, not himself. You may need to talk to him so he can better explain it. But there is almost always (I only say almost because different states have different rules) a time deadline on getting the inspection done and putting an addendum in of what you want the sellers of the home you are buying to fix. If you are stubborn and wait you will waive your rights to all repairs or your right to get out of the contract if something is wrong with the house. Typically that window is 10 days. That means that as soon as you ratified you have 10 days to not only do the inspection, but tell the sellers what you want fixed in the form of an addendum. If something is catastrophically wrong with the house you could walk away. Otherwise you are stuck buying the house no matter what the inspection says after the 10 day period.
The person I quoted below has probably never bought a house in their life as they don't understand the above ^, or the fact that most people do in fact put their house under contract while having the home they are buying under contract so that they can make a smooth transition and aren't left houseless for a few months.
What the person below mentioned is a First Right of Refusal. This means that if your home WASN'T already under contract you could put an offer in on the home you want while letting those people have the right to sell to someone else if a better offer comes along. Once your home goes under contract though, you REMOVE that first right and the home you are buying goes pending under contract. If for some reason your home sale falls through, you are not in obligation to buy the home if your financing will not allow it. The bank is pre approving you based on the fact that you have sold your current home most likely. If the current home sale falls through your financing falls through, and you are no longer obligated to purchase the house.
Lastly, the bank will order the appraisal on their own time. Most likely after the inspection is done to make sure things are okay, and to save you from wasting the money. You do still need to get your application paperwork filled out though as you should have done within 3 days of ratifying a contract. Closing is probably set for 30-45 days from when you signed, and to hit that closing date you need to get all of this started. Otherwise you could be stuck selling your house with no where to go.
The deadlines are strict, things take time, and instead of listening to people who clearly don't know the process and want to tell you your Realtor is out to get you maybe you should talk to your Realtor and have them better explain everything to you. It sounds like he is trying to make sure the process is done smoothly.
Quote:
Originally Posted by so954
Your agent only cares about his commission., You need to worry about yourself. Do not go into contract on another home without selling yours first, meaning closing and turning over the keys. You can put a contingency on a home you want to buy that you need to sell yours first, but the seller may decline that offer if there are better ones. You do not want to get stuck owning your own home and paying those bills are well as owning another home you just purchased.
PLEASE don't listen to this person. They have absolutely no idea what they are talking about.
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