As you browse listings on BHHSHodnettCooper.com or realtor.com, you may find homes you like that appear to be unavailable, due to some kind of contingency. If you find the perfect home, but it’s labeled Active Kick Out or Contingent, should you pursue it or forget it? What You Should Know About Browsing Listings Online:
The reality is that contracts fall through sometimes. If you have a back-up contract, you can buy the home should it come “Back on Market” or “BOM.”
Active kick out
Active kick out means the seller has accepted a contingent offer, such as the buyer has a home to sell before they can close on the seller’s home. The seller can reserve the right to accept a better offer and “kick out” the previous buyer. They must give the first buyer 48 to 72 hours to either remove the contingency and move forward with the purchase, or back out of the contract.
Nearly all offers-to-buy have contingencies. Typical contingencies include provisions that the home must meet the appraised value by the mortgage lender’s third-party appraiser, or it must pass a professional third-party home inspection to the buyer’s satisfaction. The buyer may make the contract contingent upon the lender funding the purchase.
Option periods give the buyer time to get financing and complete home inspections and the appraisal. Unless the buyer acts on a contingency, the home is considered out of option but it can still fall out of escrow.
To learn more, contact your Berkshire Hathaway HomeServices network professional.
Older homes that served our grandparents and parents well may appear poorly planned for today’s families. They tend to be smaller with narrow lots, closed-off kitchens, and fewer bathrooms and bedrooms. On the other hand, older homes tend to offer character and quality craftsmanship that is unmatched today. So, should you Teardown or Remodel it?
First, choose the neighborhood. You’re buying the location, so it should meet as many of your household’s needs as possible – schools, transportation, entertainment and enrichment, medical care and shopping. It should have plenty of homes similar to the one you have in mind, including remodels and scrapped homes replaced by new construction.
Homes offered at “lot value” means that the structure offers no further value. This is a great candidate for a total remodel or teardown. If the lot is large enough, it can hold added square footage or a complete new home. But if the home has plaster moldings, stained-glass windows, all-wood stairs, and other artisan features, know that those things can’t be easily replaced today. You may want to preserve those unique elements and consider remodeling to complement the home’s original design.
Take your general contractor with you to see what needs to be brought up to date and if it’s more practical to remodel or rebuild. Like homes in like neighborhoods help determine and improve value, so don’t over-build or over-improve without similar comparable homes nearby to support your home’s value.
Selling your home is one of the largest transactions you’ll ever make, so you want to make sure you sell your home quickly, for the most money and for the best terms possible you don’t want to start off on the wrong foot. Here are three things sellers should never do.
Sell it yourself.
A real estate professional has the resources and experience to help you price, show, sell your home and safely navigate it to closing. He or she can provide numerous marketing and showing services to help sell your home quickly and with as few hurdles as possible.
Pick the wrong sales professional.
Interview several real estate professionals to learn how they plan to market your home, what services they provide, and what you need to do to get the highest and best offer for your home. Choose the one who is straight with you about your home’s assets and drawbacks, and who explains current market conditions so you’ll know how to price your home successfully.
Ignore your sales professional’s advice.
Your Berkshire Hathaway HomeServices network professional is trained to help you present your home at its best. Staging, updates, and repairs will help, but what’s most important is price. Your home’s price, location and condition should be supported by comparable homes in the area. You’ll attract the most interest if you price slightly below comparable homes, allowing room for buyers to bid up the price.
Remember, every market is different and can change quickly, so be prepared.