Buying your dream home can be no easy feat, and may even require you to place an offer on the home before you’ve sold yours. There’s no one who likes to be paying two mortgages at once, and when you’re stuck with your old home while trying to buy a better home for you and your family, you naturally want to find an option that can get you the best of both worlds.

You may be surprised on knowing that you’re not the only homeowner who’s in this dilemma and that there’s a solution that can guarantee you a fail-safe in case things don’t work out how you expect. A contingency clause can be included by your realtor when placing an offer on your dream home to ensure that you’re not left paying two mortgages while living in only one home.

What Does a Contingency Clause Mean?

When you’ve found your dream home and need to place an offer straight away, some thought needs to be given to what will happen to your existing residence. For those who want to purchase a house but only if your current home sells first, inserting a contingency clause in their offer is ideal.

With a contingency clause, if your offer for the potential home is accepted, you have the liberty of backing out of buying the home if your current home doesn’t sell first. This can help you shirk off from paying two mortgages for two different properties.

It ensures that the sale for your dream home only goes forward with you as the buyer when you’ve sold your home to someone. However, be aware that your home buyer can also back out of their offer on your home if they have a contingency clause in their offer as well.

If you’re unable to find the ideal buyer for your current property within the stipulated period mentioned in the contingency clause, the whole deal can fall through.

Kick-Out Clause from Home Sellers

Your contingency clause can protect your potential home from being sold to anyone else as the seller cannot keep the home listed on the market. When you are making an offer on a house contingent to selling yours, your seller could also choose to include a Kick-out Clause for their benefit too.

A kick-out clause stipulates that your home seller can sell the home to someone else willing to buy the property without a contingency clause. The seller will give you notice of the same, and then you can decide whether to immediately buy the home or let it go.

Know What You’re Looking for and What You Need

If you’ve decided to sell your current home in favor of another location that is more ideal for your requirements and family, it’s imperative to find your dream home as quickly as possible.

When you’re living in a competitive and desirable location, your home could be sold as soon as you put it on the market and you would need to find your next home within a small period.

From neighborhood to home design, you should have discussed all details with your realtor (if you’re using one) or know all of them yourself before you begin your home search. It can make the process quicker and more efficient.

Think About Potential Taxes

Buying and selling a home within a short span can make you liable to pay different taxes depending on which state you are in. All states require you to pay Capital Gains Tax (if you qualify for it).

Depending on how long you have lived in your home, you may have to factor in the costs that will be going towards taxes before you start looking into how to buy a house contingent on selling yours.

Picking the Ideal Closing Date

Many times, when you’re in the process of buying a home and selling a home simultaneously, it can become hectic and you may have to move out before your move into your new home.

To prevent a situation where you’re left without a residence for an extended period, choose a closing date on your current residence for at least a week longer than the day you are planning to relocate to your next home.

If you’re planning on choosing to sell your home and then looking for your dream home, consider extending the settlement date a bit further down the line. Your contingency clause on your offer for your dream home will be readily accepted by home sellers if they’re already aware that you’re currently in the process of transferring your property to another buyer.

Lease your Existing Home

If you’ve already sold your home before finding your next home, or the offer on your potential home has fallen through, you could consider leasing your current residence from your buyer.

Your buyer will most likely only agree to lease you the residence if they aren’t planning on moving in anytime soon or are flexible about their moving dates. When you lease your current residence, it can save you from paying two mortgages while still having a place to stay.

If you haven’t found your next home yet, make sure to rent your current residence for the ideal time it would take for you to close on a house. If you’ve already closed on a home but are waiting to move it, you could lease your current residence for a week more than your expected move-out date.

Have Alternate Options

If you’ve found your ideal home but can’t find any sellers for your current residence, there’s no reason to fret. You can real estate buyers online in multiple states that will give you a fair valuation of your home without conducting multiple inspections. You can take your current home off your hands in a matter of a few hours with no hassle.

You can also choose to competitively price your home to offload it quickly into the market. To determine a competitive price, you would need to have a thorough knowledge of your neighborhood and home estate prices in the surrounding areas.

Being aggressive about your selling your home by using tactics like staging, renovations, and so on can send a signal to your sellers that you’re serious about selling your home.

If you’re stuck in the opposite situation, where you’ve sold your home but have no place to move into, it’s better to think beforehand about temporary accommodation or a leaseback agreement with your potential buyers before you start on the contingency process.

Making an Appealing Offer

You may find that home sellers are reluctant to accept offers when they feature a contingency clause. It may be because real estate is competitive in the area, or they may have several other options to explore rather than settling for yours.

You have to ensure that your offer to buy your dream home is attractive enough to make the sellers wait for your home to sell. This can include placing an offer higher than their asking price, letting the sellers decide on a closing date, paying a higher upfront deposit for the home, among many other options.

In a competitive real estate market, you have to stand out from other buyers by putting a personal touch on the buying experience too. You can explain your situation to your sellers, who may be understanding and willing to wait for your home to sell without requiring additional benefits.

Work with An Experienced Realtor

Having an expert along with you while you’re in the stressful period of selling your current home and simultaneously buying another can save effort and unnecessary hassle. An experienced realtor will help you stage your home and make it more appealing so it can be sold earlier while showing you ideal homes for your requirements.

Since your realtor will also negotiate with both buyers for your current home and sellers for your potential home, it’s important to find an expert.

Buy Your Dream Home Contingent on Selling Your Existing Home with No Problems

More than 60% of homebuyers have already brought their first home and are looking to resettle or upgrade from their current residence. Many buyers, depending on the area, may have an advantage when it comes to including contingency clauses in their offers, because home sellers may be using the same technique to find their next home.

If your home has already been on the market before you have placed an offer on your next home, sellers may be curious to know how long your home has been on the market. For homes that have been on the market for more than 6 months and show no signs of selling, sellers may be less willing to accept the offers from their homeowners.

Protect yourself from unnecessary financial loss by paying for two mortgages simultaneously when you opt to have a contingency clause included in your buying offer.

If you have found your dream home and your seller isn’t willing to wait for your home to sell, you could always entrust real estate buyers to quote a fair price, allow leasebacks, and even give you a choice on your moving out day for a hassle-free experience.

While having a contingency clause can lessen the costs of buying a new home, you will need to conduct thorough home inspections by experts to ensure that you don’t have to pay for expensive repairs or renovations in the future after you move in the home.

Need to Get an Instant Quotation on Your Existing Home? Get in Touch With Real Estate Buyers You Can Trust

You may have to wait days, or even months to get attractive offers for your current home from buyers. You can miss out on your dream home with purchase contingencies that take a lot of time to fulfill. With iBuyer, selling your home instantly has never been easier.

You can get an instant home valuation to find out a close estimate to how much your home is worth and even get an instant offer from iBuyer if you’re short on time. There’s no need to clean or repair your home for you to get instant cash on your current home sale! Call an iBuyer Specialist at 866-655-1802 for an instant valuation!

The post How To Buy a House Contingent On Selling Yours appeared first on iBuyer Blog.

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If you know anything about California, you know that it’s one of the most expensive places to live in the entire United States. This is particularly true in areas like San Diego, Los Angeles, and San Francisco, where residents regularly pay over $600,000 to live in small houses with small yards. 

But just because many parts of California are expensive doesn’t mean that they all are. There are cheap places to live in California, and they’re not all out in the boonies either. 

Curious as to the best and most affordable places to live in California? Where is the most affordable place to live in California, you ask? These are the cheapest places to live in California. 

Eureka, CA

Located in northern California, about 270 miles north of San Francisco and about 150 miles south of Oregon’s southern border, Eureka is a coastal city that’s just as beautiful as any California city you’ll find south of it. Much smaller in population than those other cities, it’s home to around 27,000 people. 

The median listing home price in Eureka is around $390,000, a small price to pay compared to the prices in many other California cities. Offering a variety of single-family homes, multiple-family homes, and condos, it has a little something for everyone. 

But you might be wondering: what does Eureka have to offer? Why would you want to live there? 

Well, for one, it’s right on the ocean, sitting next to both the Humboldt and Arcata Bays. As such, it offers beautiful views, not to mention a myriad of aquatic and seaside wildlife. 

It’s also home to Sequoia Park (not to be confused with Sequoia National Park), which consists of humongous redwood trees. Within the park is the Sequoia Park Zoo, the oldest zoo in the state of California. 

There’s also Old Town Eureka, an urban neighborhood consisting of various shops, bars, cafes, coffee shops, restaurants, and Victorian-era homes. This is a great place to walk around while enjoying a pleasant day. 

In truth, Eureka is an outdoors enthusiast’s dream. With its rocky coastline, its massive redwoods, and its ample hiking trails, it’s natural living at its best. 

Bakersfield, CA

Located around 115 miles north of Los Angeles, Bakersfield is a city of 375,000 that’s growing at a rapid rate. Situated on the Kern River, it’s much more rural than cities like Los Angeles or San Diego. 

Most importantly, Bakersfield is cheap . . . really cheap. At present, its median housing cost is just $315,000. That’s staggeringly low for the Golden State, especially for a city that’s so close to Los Angeles County. 

But don’t let that low price tag fool you. Bakersfield is a solid city with plenty for residents to do. In fact, for many, it’s an ideal alternative to California’s bigger cities. 

One of the more interesting attractions in Bakersfield is the California Area Living Museum, a zoo containing animals that are native to the Bakersfield area. 

There’s also the Park at River Walk, a park located on the Kern River, complete with picnic tables, running trails, and the like. This is a great place to exercise, people watch, or just relax on a sunny day. 

For the arts, there’s the Fox Theater. This has everything from musicals to concerts to plays and more. 

On the outskirts of town is a series of mountains. These are covered in hiking trails and lead up to Sequoia National Park, a natural park with otherwordly redwood trees. 

All in all, Bakersfield is a great place to live. It lacks many of the amenities of places like LA but is right on par with nature and outdoor activity. For those who like the outdoors, Bakersfield is a solid choice. 

Blythe, CA 

Located on the border of California and Arizona, Blythe is a small town situated 225 miles east of Los Angeles and 150 miles west of Phoenix. It has a population of around 20,000. 

The median housing cost in Blythe is extremely low, especially by California’s standards. At present, it’s around $177,000. 

The best way to describe Blythe would be to call it a desert city. It’s positioned in the Palo Verde Valley, an agricultural region within the Colorado Desert. As such, it’s characterized by desolate, dusty land that is intermittently interrupted by deep blue bodies of water. 

A place like Blythe isn’t for everyone. However, if you’re into outdoor life, it might be right up your alley. It’s certainly a great place to hike as well as a great place to look up at the stars. 

Featuring a few different parks, it offers playgrounds, bodies of water, and scenic views of distant mountains. It also provides a local pool and recreation center. 

Now, Blythe has nowhere near the amenities of a place like Los Angeles. And it’s a good 4 hours to the ocean. But, for its exceedingly low price, it still has quite a bit to offer its residents. 

If you like a slower pace of life and don’t like being surrounded by people all of the time, this could be the ideal town for you. The only trouble you might have is finding a job in the area. 

Clearlake, CA

Another exceedingly low-cost place to live in California is the city of Clearlake. Located on Clear Lake, Clearlake is in Lake County, around 110 miles north of San Francisco. 

At present, the median house sale price is around $140,000. That’s an absurdly low price for any home in California and especially for a home that’s located miles away from a beautiful lake. 

Wondering what there is to do in Clearlake? Well, the majority of the activity revolves around the lake itself. This runs the gamut from boating to kayaking to swimming to fishing and more. 

However, there is also some good hiking in Clearlake, as well as in the surrounding communities. Some of the places to hike include Redbud Park, Anderson Marsh State Historic Park, and Konoci County Park. 

Clearlake also offers an attractive downtown area, which is filled with restaurants, cafes, bars, and shops. It’s a great place to walk, relax, and just people watch. 

It’s important to note, though, that Clearlake has more of a town vibe than a city vibe. It’s home to just 15,000 residents, though it does see some tourist attention year-round. 

If you like a small-town atmosphere and being outside, Clearlake is a great place to live. Like in Blythe, however, the key is to find a job in the area. There isn’t tons of work in Clearlake or the surrounding communities. 

Chico, CA 

Hometown to NFL quarterback Aaron Rodgers, Chico is a city of around 95,000 located in northern California. Located around 85 miles north of Sacramento and around 150 miles northeast of San Francisco, it offers an interesting mix of urban and rural, making it a great spot for people who love the outdoors but don’t want to give up city amenities entirely. 

The median house sale price in Chico is around $450,000. For a relatively large urban area in California, that’s downright low. 

And the job market in and around Chico is nothing to shake a stick at. Not only does Chico itself provide a good number of high-earning jobs but so too do surrounding Chico and Sacramento (though there is a decent commute involved with both). 

As far as things to do in Chico go, there are many. Chico is home to ample restaurants, breweries, cafes, and coffee shops. It’s also home to attractions like the Gateway Science Museum and the Chico Air Museum. 

Natural attractions include Bidwell-Sacramento State Park, Bidwell Park, and Sycamore Pool. These include everything from rock formations to bodies of water to desert areas and more. 

There is also several parks located throughout the city, in addition to a dirt-track auto speedway and a variety of historic sites. 

In short, Chico is a great place to live. It has a bit of everything and is safe and friendly to boot. If you can find employment in the area, it’s an excellent place to call home. 

Oxnard, CA 

Another of many affordable places to buy a home in California is Oxnard, a coastal city of 200,000 located about an hour northwest of Los Angeles. While it’s not cheap by most standards, it’s a steal by coastal Southern California standards. 

The median home sale price in Oxnard is around $675,000. Note, though, that you can find homes as low as $450,000 and condos for even less than that. That’s about as affordable as you’re going to get for a residence next to the ocean just an hour from Los Angeles. 

Wondering what there is to do in Oxnard? Well, there’s the ocean, obviously. It’s great for fishing, boating, swimming, and sunbathing, to name just a few activities. 

In addition to that, Oxnard offers a variety of museums, parks, eateries, and drinking establishments. These drinking establishments include bars, breweries, and wine cellars. 

Downtown Oxnard has a classic feel, characterized by houses and buildings from a variety of eras. For instance, you might see a Victorian-era home on one corner and a 50s-era department store on the other. 

Extremely safe and laid-back, Oxnard is a terrific place to call home. So, while it might still err on the expensive side, it’s well worth the cost, especially when you compare it to some of the other towns and cities in Southern California.

Temecula, CA 

We’ll end our list with Temecula, a city of 113,000 located around 85 miles southeast of Los Angeles and around 60 miles north of San Diego. A popular resort destination, it’s famous for its wine. 

Like Oxnard, Temecula can still be fairly expensive. Its median house sale price is around $690,000. However, it has 2-bedroom homes for as little as $350,000 and 3-bedroom homes for as little as $450,000. 

That’s a small price to pay for a home that’s in close proximity to both Los Angeles and San Diego. The ocean’s not far away either and can be reached in about an hour. 

The median household income in Temecula is approximately $96,000, and there is a good amount of decent and high-paying jobs to support families and individuals. 

Curious about things to do in Temecula? Well, it’s located in the heart of Southern California’s Wine Country. As such, there are countless wine cellars, wineries, and vineyards to frequent. 

There’s also Old Town Temecula, a preserved area of the city that allows you to catch a glimpse of its Old West past. It’s lined with shops and restaurants.

Additional attractions include Pechanga Casino, a children’s museum, and a variety of parks. There is also a bevy of places to hike in the area, including at the Temecula Creek Trail Park and the Temecula to DeLuz Lookout Trail. 

So, if you’re a wine aficionado, or if you’re looking to get into the wine industry, come to Temecula. It offers an exceedingly high standard of living while keeping you close to all that Southern California has to offer. 

Take Advantage of the Most Affordable Places to Live in California

California is a beautiful state characterized by tons of amenities and near-perfect weather. Even its cheapest locales have a lot to offer. As such, if you’re seeking out a new town or city, you would be wise to take advantage of the most affordable places to live in California. 

Have a home to sell before you come out to the Golden State? Want to see what it’s worth? Use this valuation tool and receive a no-obligation cash offer.

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