Buyers Ask – Can I put an offer on a house before I sell mine?
Yes, you can make an offer on a new house before you sell your old house IF at least ONE of the following statements are true.
- You have been approved by a lender to carry a second mortgage.
- You include a Closing on Buyer’s Property Contingency in your offer to purchase.
How Can I Get Approved For a New Mortgage?
Picking a lender should be more than just rates. If you’ll be needing a mortgage to buy your next home, make sure to read how to pick a good mortgage lender.
We even include a list of our recommended mortgage lenders in southern Wisconsin because they’re professional, responsive, problem-solvers, and we’ve seen them serve home buyers well.
What Does ‘Home Sale Contingency’ Mean in Wisconsin?
“Home Sale Contingency” is a shorter way of saying “Closing on Buyer’s Property Contingency,” which is the actual language used in Wisconsin’s Offer to Purchase contracts.
Below is a snippet of the “Closing of Buyer’s Property Contingency” on the WB-11 Residential Offer to Purchase in Wisconsin, as of November 2022.
This means your offer is only legally enforceable if you are able to sell your current house. This can allow you to buy a new house without taking on two mortgages.
What Should I Know About Home Sale Contingencies?
Being able to close on your property before buying your next house can be a great method for buying and selling at the same time. However, there are some things you should be aware of:
- There is a deadline. – Line 330 will specify when your home sells by in order for this offer to be binding or legally enforceable. The seller won’t want to wait around forever for your house to sell. (So use our seller’s guide and staging tips to get your property sold fast!)
- Contingencies can make your offer less attractive. If you are competing with other offers, your offer could appear less attractive than someone who does not have a property to sell, since there is the risk that your current property may not sell.
- You could get bumped. – Bump clauses allow a seller to “bump” a pre-existing, contingent offer out of first position if the seller receives a secondary offer if the person who made the first offer cannot remove one or more of their contingencies within a specified period of time (the default time is usually 72 hours). The box on Line 335 on the current Wisconsin Offer to Purchase contract will be checked if the Bump Clause is included in your purchase contract.
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Professionals Help You Buy & Sell At The Same Time
Buying and selling a house at the same time can be complicated, but it can be easier if you have a professional who is familiar enough with the process to guide you.
Shine Realty is a family-owned brokerage in south-central Wisconsin, and we’re known for treating our clients like family and getting results. We help people buy and sell houses from Madison to Milwaukee, and each small town in-between. Contact us today by filling out the form below or calling our office at 920-674-9821.
Tips for Home Buyers
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