First things first - As your local Santa Clarita real estate expert agent - yours truly, Connor T. MacIvor, I have a whole series about how you can buy your first or 10th home in the smartest way possible.
Our most recent real estate article for homebuyers that want to approach buying a Santa Clarita home as an expert came in this form:
Within the online channels and on TV, you are going t encounter these "websites" that are posing as if they are working for your greater good. They say they are going to help you find the best agent possible. One that has high reviews. An agent that is superior to all others that represent home buyers and home sellers.
Here is what you may not know. They are charging those agents a ton of money to be represented on their website and referred to you!
Everything online is expensive. You using me to buy a home is not. In fact, you utilizing my services to represent you in the procurement (buying) of real estate is FREE. You don't pay my fee - I get paid by the home seller.
The best way to approach real estate is to have your own agent right out of the chute. A local area expert that did not come about by what they were paying for leads. Someone that is homegrown, who has their relatives and investments in the local housing market.
How to do this is by searching google and looking in the "organic search results". Sometimes this is very confusing to do. Most times it seems that the "organic results" are getting fewer and fewer.
You then want to look to the local real estate website. Not the large Syndication Sites. Those sell your personal and private information. You want the website that has a local address. The real McCoy. The actual local Agent.
At this time, before I get into selling one home and buying another at the same time, save me in your phone. Program my name and phone number so when you are ready to do anything real estate related in the State of California, I'll only be a couple of presses away!
Connor MacIvor - Realtor - Real Estate
That's is - Save this information as your California connection when it comes to real estate, homes, and other real estate related items.
Now - onto the topic which is being answered by me, Connor MacIvor concerning a person being able to have one home sold and close at the same time they buy another home.
The two in one close
When we have a real estate buyer that is looking to upsize, downsize or relocate to another state or city, and if they have a home they currently have, they mostly want to sell that home, find another one and then have us had negotiated to close both residences at the same time.
This happens day in and day out, but you want to make sure that you have hired a real live, full time, experienced and knowledgable real estate agent to handle the entire process.
First things first, I always start at the beginning. Looking at what type of home and reason for the move that the buyer can explain. Maybe they are looking to upsize, which seems to be most common, getting out of the condo they own and moving into a single family home. They are doing this because their family is expanding.
What now? Developing a Two in One Close gameplan.
Does the homeowner who wants to buy and sell in a single transaction have a place to stay in the interim? Of course, in a perfect world, as would be laid out by contract, both sides would close at the same time. The home they want to sell and the home they want to buy, both closing on the same date and time - where all keys are exchanged between all parties at 5 pm!
That is what would be shot for, but things do come up and people do have their own minds. Although all parties to the transaction agreed in contact, by signing. It could be that 5 levels away a home seller is not able to be out of their home until 7 pm. The movers arrived late. That could delay the 4 other levels of the transaction and you too! The thing that you need to remember is to not break down. Don't panic, all will work out, eventually. Just know that it's a possibility that things don't go as planned.
Let me explain the 5 levels deep thing. If you want to sell your home contingent on you finding another home of your choice and closing that at the same time your buyers close on yours, great. What if your home buyers have a home they are needing to sell and close concurrently? What if those people who are buying your buyers home have to sell a home in order to buy theirs? The deal can extend deep into many different levels, like links on a chain.
The security of the entire house of cards is dependent on the weakest link.
While I make it my business for my Santa Clarita real estate sellers and real estate buyers to ensure all parties are keeping up with their end of the transaction, things happen.
One day I could call to the third level - the buyer's agent for the buyers that are buying your buyer's home and check in. They may say that all is great. I then want to follow up with those buyers lender. Their lender tells me they are waiting on a verification of employment to be submitted with a new date. Let's say that the accounting department of where that buyer works is on vacation. (meaning, only one person works in that department because the company is that small). It's going to take a creative person, like me, to find out who handles this type of business when the only person assigned to the accounting department in on vacation.
Even with all the follow up that happens, even with all the attention being paid on each of those links, sometimes things go awry and deals fall apart due to unforeseen issues. Like Death, believe it or not - Death seems to stop a multiple level real estate transaction cold.
HomeBuyer Expert | Equity and Financing
We will want to explore how much your home is worth and after paying the fee's to sell your home how much will you be left with and what are you going to do with the proceeds?
Most people re-invest it into their next home, the home they are buying. Some take some of those proceeds from the equity that has been earned on their present property and pay off bills. Others of our clients use that money to buy stuff. Like RV's, Toys and other items that depreciate horribly.
It's your money and you can do with it what you want. Just make sure you are checking with your Tax Person to see if there may be any negative implications of investing that equity into something other than the next home we are assisting you in buying.
After we pencil out the money left after selling your home at a particular price, you will need to speak with a lender. That lender is going to come from someone you know, who was referred to you or from us. The reason why a lender that we work with will hold an advantage to you is that we know and vet them and have worked with them in the past. Our clients swear by them and we ensure they are doing their due diligence at all turns within the real estate transaction.
At the end of the day, however, you can work with who you want. I just want you to have the best deal and the best service.
The real estate lender will then tell you how much you should be looking for in the next home, related to price, HOA fees and potential extra property taxes in the form of Mello Roos.
Of course, some don't like HOA's - and most don't like the Mello Roos Taxes - I will be able to search for you for homes that don't have those fee's or at least are very reasonable in cost.
Once that number is established and if I'm able to provide to your homes and current real estate listings that fit your criteria, we are off and running.
Getting your home under contract and dispatching a professional photographer is the very next step. Once that happens, while I'm pre-marketing the photographs are being taken and supplied to me, I'm building the online systems that will be shared with the online syndication websites and systems. I ensure that everything is as I want it before hitting the "release to the world" button.
Sitting and waiting...
The right place to be is waiting until you have an accepted offer on the home you are having us sell for you before looking seriously at homes to buy.
The reason is if you find "the one" and want to write an offer without having your own home in escrow, the seller will turn you down cold.
Even with all of the documentation that I would present showing that your home is advertised through the roof and that we are priced perfectly, still, I would not let my sellers accept an offer from a home buyer that has a contingent home for sale and not in escrow.
While the buyer's home or your home is priced within comp range, there may be other reasons that an adjustment in price won't fix. Maybe your home is upgraded not to the majority's liking? Maybe your home is priced right within comp range but is located off of the beaten path?
Wait we must. You can search online, you will get listings that I send you, but until your home is in escrow, we must wait. Of course, if you want to view homes in order to get me "dialed in" as far as knowing what type of home with what type of upgrades you want, that works for me.
To write an offer before your home is in escrow will be to do so in vain.
Open the flood gates - time to start moving...
We have your home in escrow with a home buyer. We have negotiated a certain amount of time it will take for you to find your home of choice. If that time frame is exceeded, then you don't sell your home and your life continues.
If the home buyer is not dismayed, I may be able to convince them to wait longer to allow you for more time to search for your home of choice.
It happens and contingent transactions in real estate work out day in and day out. Contingent means that the sale of one home is contingent on the purchase of another.
If one does not happen, then the other cannot occur.
The most important thing is to protect the contingent party via agreements and counters that are submitted while we are getting the deal put together.
I don't want my seller's feeling pressured and the same goes for my home buyers, being pressured is horrible and sometimes mistakes are made. I cannot allow for that to happen under my watch.
Home Sellers do accept contingent offers. Some new home builders also accept contingent offers. All will depend on the activity with their home that is being sold and if someone who is "not contingent" wants to buy it.
Most home sellers will accept a noncontingent offer (an offer where the buyer has no home to sell) over one where the buyer has a home to sell, even if their home is in escrow.
Yes you can sell and buy a home at the same time
I will be here when you are ready to have your real estate won and not just done. Having the local consummate real estate expert for both buyers and sellers in the Santa Clarita Valley is super important.
Remember to save me in your phone so that if you or anyone you run into having any real estate needs in the State of California, I'm just a phone call or text message away from being able to help you or them.
Connor MacIvor - Real Estate - Realtor
I have been representing both buyers and sellers in Santa Clarita real estate since 1998 and I will be there for you also. Be wary of the real estate syndication websites. Be careful to whom you give up any and all of your personal information when it comes to online real estate inquiries.
SCVnest.com is my home system for Southern California, It is protected and secured. Any and all information exchanged on that site is only seen by me and I'm already on your phone. :) - Talk soon - Connor with HONOR