The housing economy has caused many people to face a dilemma.
They may need to move because of an employment change, family matter, or other necessity.
The challenge arises that if you must move and have a home to sell, what are your options?
Buying on contingency is a common option.
A person with a home to sell would make an offer on another home contingent upon the sale of their present home.
If the present home is in escrow, this makes for a relatively strong purchase offer and is likely to be accepted by the home seller.
However, even if a home is under contract and in escrow, there is no guarantee that the property will sell and the transaction will be completed.
Contingent offers may also be made on the sale of a home that is on the market and not under contract, however, the seller may be less apt to consider this offer if the market conditions in the locale of the buyer’s property that they are selling does not indicate a timely sale.
If you must move and are upside down (owe more than the value of the property) on your home, you could consider renting your present home until the market improves and renting in your new location until such a time when you are ready to sell your home.
The rent from your home should cover your new rent payment; however, you will still be responsible for your monthly mortgage until the time your home sells.
This does however, alleviate the burden and responsibility of having two mortgage loans.
Another option is a lease-purchase agreement in the new location.
If you find a home in your new location, you may offer the seller an agreement that states you will lease the home for a period of time and have an option to purchase the home at a later date.
During the lease agreement, you may market your home and upon its sale, execute the option to purchase the home you are leasing.
In the event your home does not sell, you give notice that you are not going to execute your option.
These agreements can be structured in a variety of formats and should be done with the help of a Realtor and an attorney.
Of course, the best thing to do is plan ahead if possible and get your home sold before you purchase another.
The average time on the market for homes sold this year in Payson, Pine-Strawberry and Star Valley is 174 days.
Ray Pugel is a designated broker for Coldwell Banker Bishop Realty. Contact him at (928) 474-2216.