Expert: Jessica Bryan - 10/20/2006

Question
My fiance has found a house that is perfect for us. He put in an offer, and is currently applying for a pre approved loan.
However he has yet to have his property assessed, appraised, and put on the market. I am totally unaware of what to expect and overwhelmed at the whole idea of being stuck with two properties, and knowing we really need to go through our existing house before having it looked at. Can you please tell me what to expect? What types of agreements could be made regarding the buying and selling of the two properties? Any info you could offer would be so helpful!
-Tara

Answer
Dear Tara,
I would have said that your fiance should make an offer that is contingent upon selling his existing home but since he already presented an offer (and assuming it has been accepted) he can't do much now except to get his existing home sold as soon as possible.  The only thing I can say is that the bank may show a hidden contingency that says that your fiance must sell his existing home in order to qualify for a loan on the new home and if there is some verbiage in the contract that says that the offer is subject to loan approval, he may have an 'out' or at least do a contingency addendum to protect both of you from having two house payments at the same time.  The purchase of the new home would have to wait for the sale of the other home to close.  If you haven't done so already, make sure to take the offer to purchase to an attorney to look over and explain all of the conditions.  Also, in the sale of the existing home, make sure that your fiance consults with a top notch professional broker who has excellent marketing skills to go through the home and advise on what must be done to maximize the opportunity for a very quick sale.  Even though you will have to pay a commission to a brokerage, you will find that it will minimize the stress and maximize your time and profit to employ a real estate broker.

Good luck and best wishes.

Jessica Bryan