Today’s market, with its historically low inventories, has been a boon to sellers. People can typically sell their homes in a short period of time with multiple offers to choose from. However, the flip side of that coin is that those sellers now become buyers. And as buyers, they will face the same issues that other buyers face: low inventory & high competition.
Most sellers rely on the proceeds from the sale of their existing home to purchase their new one. To avoid being homeless, sellers need to get an offer accepted on a new home before their sale closes escrow. That means they would have to write a contingent offer.
What is a Contingent Offer?
A contingent offer is made by a prospective home buyer to a seller with conditions that must be met before the sale can be completed, such as the closing of the buyer’s existing home. If the seller accepts such an offer and something prevents the buyer’s home from closing, the deal probably falls apart. Both parties are then back to square one. Contingent offers are not very attractive to sellers, especially if they have other offers in the wings that are non-contingent.
What’s the Solution? How Do You Avoid Making a Contingent Offer?
The TK Team at Amerifirst Financial – one of our trusted referral partners – has developed a Trade-In program to allow sellers to purchase their new home without writing a contingency offer. Here’s how it works:
- Contact the TK Team at Amerifirst Financial to apply for the program.
- The TK Team will run comps and establish a value for your existing home.
- Amerifirst Financial will advance you 90% of your home’s equity.
- The Donnelly Group will help you find your next home, and with the cash you received from Amerifirst Financial, you can make a competitive non-contingent offer.
- The Donnelly Group will list your home and help you get the best possible price.
- You will pay a fixed cost with no hidden fees and no inspections or repairs.
- When your home sells, any proceeds above the 90% will be paid to you in a separate check.
- Say goodbye to your old home and hello to the new!
Sounds like an iBuyer?
You might be wondering, how does this differ from the programs offered by iBuyers like Zillow, Offerpad or OpenDoor, etc?
Well those programs have many hidden fees that you may not be aware of. When you add them up, they will reduce the amount of your proceeds from the sale. Then they’ll have the home inspected and if repairs are needed, those costs will also be deducted from your proceeds. Remember, the proceeds from the sale of your primary residence is tax-free money. You want to leave as little as possible on the table and put as much as possible in your pocket.
Watch this short video in which Zach and Katie from The Donnelly Group are joined by Tara Krieg from the TK Team At AmeriFirst Financial. The guys further explain the Amerifirst Financial Trade-In program.
Contact The Donnelly Group!
If you have any questions about contingent offers, or about the Amerifirst Financial Trade-In program, please contact the Donnelly Group first at 480-792-9700 or by email.