Welcome back in today's video we're Going to talk about how do you actually Buy a house prior to selling your Current house I'm joined by Jim Black of Revest homes welcome Jim thanks a lot Thanks for having me on long time no See long time no See inside joke there um so yeah um There's a a some loan programs out there That allow you to purchase a house first Prior to selling your house so a lot of People who are current homeowners they Want buy a house often need they need The equity out of their house in order To buy a new property but the um Challenge that some people have I think This is kind of a common challenge as Well is that people are not you know Just listing their house for sale and Then waiting for the right house to pop Up because that could take months and Months even potentially years and so There are ways in which you can you know If you find a house set you know matches All of your criteria you've been waiting For a long waiting for it for a long Period of time you don't have to rush to Get your houses for sale and then place A contingent offer so that's what Today's video is all about so Jim um Take it away awesome so it's a simple Way of this program is known as Buy Before you sell BB or simply put the Buy It Now button
That's the only that's the simplest way I can explain this opportunity a lot of Families right now are they feel trapped In their property not because they're Upside down not because they can't Afford their pay payment is the opposite Actually it's because if they move they Can't afford their payment or inventory Is so tight there's no properties that They want to move to so that's called The anchoring effect that's happening Right now where people have a low rate Of maybe three or four% and they don't Have the motivation to move unless they Find the property that they're looking For for the next life event that's where The Buy before you sell Bridge loans Step into play these program s allow Someone to make a non-contingent offer Otherwise known as a contingency Buster Loan where they can write an offer Either like all cash and close quickly Or do a conventional loan in either Example they're using the equity from Their current property as down payment For the next loan they're very Complicated loans a traditional bank Doesn't do these very often but what we Find is it gives our borrowers an edge Up against other offers that might be Similar people again don't know about These products that are out there so Again if you find a rare opportunity if You find a house two doors down from
Your parents or maybe two miles farther From your in-laws um you know that might Be a good opportunity for you maybe you Find a house next to your best friends Or in the best school district and they Have no turnover or no inventory that Comes up that's a great way to to think Of these programs that allows you to buy Before you sell or maybe you're retired Maybe you have a two-story home and you Want to be in a single story home closer To your retired friends in any of those Situations you do not need to list your House for sale first you have time you Have up to a year normally to wait to do That the biggest thing is you wouldn't Want to do that unless you know where You're going to be ending up and that's Why this approach is so convenient it Doesn't create an expectation for you to Sell your house right away you can wait Until you find the right property you May talk about that let's talk about That I'm I'm on the real estate um sales Side right often I'm also a licensed Officer just like yourself but you know If I'm a you know listing agent Representing a seller I get two offers One offer is hey my clients just saw This hit the market they absolutely love It they want to place in an offer then As a listing agent one of the first Questions I ask is it going to be Contention on them selling their home
And in this example here it would be yes So in this example the house probably is Not even listed for sale so placing an Offer that's contingent on selling in Which the house is not listed for sale It's basically the bottom of the barrel Regarding offers because you have no Idea um you know how fast the house is Going to sell and when the house is Going to be listed for sale for example As well so that is really at the bottom Barrel regarding terms of an offer in Contract Using this bridge loan example Buy Before you sell again like Jim says you Can write a non-contingent offer meaning You can't have a contingency obviously For inspections but you can have no Contingencies for an appraisal and Loan So writing an offer let's just say I'm Representing the seller an offer in Which it's contingent on the buyer Selling the property and it's not in List of for sale that's just a basically A throwaway offer in many markets Compared to an offer in which it's Basically act acting like a cash offer You can close in how many days Jim is it Seven 14 days you can close one of those Like all cash offers in 11 days at least In California every State's different so Reach out to us to learn more about how State requirements play a role in this Strategy absolutely and Jim's like a
Specialist in this in the San Francisco Bay Area uh the Santa Cruz County as Well North C I say um but so uh you know Getting the offer that's contingent on Um selling basically a junk offer Compared to an offer that's hey we can Close this in 11 days and by the way There's no underwriting process uh Involved in in other words like as a Seller or a listing agent I'm not going To worry about the buyer getting their Final loan approval and on top of that I Don't have to worry about hey is there a Contract price let's say it's a million Dollars I don't have to worry about an Independent appraiser Ving that property For less than $1 million which will you Know cause a um another round of Negotiations between the buyer and Seller so this is basically like a cash Offer closing very quickly uh basically An assurance that they're going to be Buying this house um as long as Inspections go well so I just want to Kind of shed some light on that it's Much different um getting an offer That's contingent on selling compared to A uh an offer using this loan product For example and I will give an example Personally two years ago I had a house In a seasonal Market as a house in the Mountains I knew if I didn't sell my House by like November 1st and close I Was going to have to wait till probably
Next May or June so smart buyer came in That had two offers one that was Contingent upon them selling their other Mountainous first or an all cash offer Like a bridge loan that came in $30,000 Less or about 5% less but it was peace Of mind to me to take that offer because I didn't want to deal with the winner I Didn't want deal of making my mortgage Payment or having to maintain the house Or worry about some contingent offer That may not even go through so it works It works well for both buyer and seller When they understand the cost versus the Value of doing this and everyone's cost Versus value is unique to them and That's what I also love about this is That there's not a one-sized fits-all Program so it's truly about your Objectives Jim I got to move into the School district by September 1st I have To be in there otherwise I can't move my Kids Jim I have a two-story home I have A bad hip I want to move into downsize Into a single family home I gotta do it It's painful I can't live in this house Anymore I have to go rent something else Otherwise it just allows you to get a Call to action completed and give you Time to do whatever you want on your Sale maybe you need to do new carpet new Paint new improvements take your time You don't have to rush to do that a lot Of people people that make a mistake and
Don't have good representation around Them will sell their home first and then Being a scramble to figure out where They're going to move to um my Horror Story on this is I had a family true Story have to go into 10 aonb Airbnb Rentals for one week at a time for three Months because the agent told them that They should sell first and buy later Because the agent was not versed on this Did not know that versus They could have bought that new house And sold their other house later versus Trying out every strange a in B Be Be House in the neighborhood and they had Animals too so the animals had to be in Animals had to be in a pet pet hotel Which is extremely more expensive so Again everyone has different needs maybe You have small kids maybe you have Special needs maybe you have animals Maybe you're a senior maybe you're Moving relocating for a job either way This is a viable way of looking at a Situation it allows you to go look for Your next lifestyle move without Committing to anybody about selling your House or fixing up or staging it to have All these random people come in you can Do that later yeah I mean it gives you a Peace of mind some flexibility on that So if you find a house you absolutely Love you write a contingent offer then You have to let's just say they accept
It um then you only have a set period of Time in which you can sell your house Too right that's per the contract that's Going to vary on the on the contract in The area as well so you might be more Inclined on taking a lower offer on your Existing house than if you had more time To um you know figure out selling your House first so um in my mind this could Be a fantastic way for people to get That flexibility and also um they could Be leaving uh money on the table by not Uh doing this as well potentially as Well and what you also think about the What's the time value of money again Time value of money means if I have an Opportunity cost on this money today What is it in today's market or what is It if I don't do something and that's Your decision as the consumer I don't Have the answer I'm not going to push You to do something you decide what Value and time means to you and what Cost is versus value so everyone on this Channel needs to do that in their own Mind and figure out what that means Because I'm I'm only going to support Something where it's been vetted out People understand the tradeoff of the Cost versus value and then it's up to Their own goals so that's the best way Of helping people is put it in their Court first get their objectives out of The way figure out where their pain
Points are what's important to them and Then we provide the resources yeah Absolutely uh one thing too that I was Um we've been talking about Bridge loans You and I for a while now and one thing That really um caught my attention as Well is that the under process as well I Mean uh using a regular loan to buy House the underwriting process is like Going through an audit it's it's so um Um uh I don't know let's just say time Consuming uh versus using the ab bridg Lone for example it's a very easy Underwriting process um and um I would Say that's a a big time benefit on that One as well but of course it's not for Everyone um but if you're interested in You know buying a house first prior to Selling might be an option you want to Explore at the very least though and It's no harm no foul by the way so There's no cost until it funds so get Preapproved using this option and then Go feel like you have opportunity to go Look at things you don't have to be on The sidelines you can go look because When rates go Lower I believe values will be the same If not higher so again if something Costs less tomorrow to buy there'll be More people wanting to buy that so again Do it on your own terms what's important To you why are you making this move why Do you need to even sell or move or do
Whatever you want to do and our job as Professionals is to look at that Long-term Horizon and your ability to Repay your debts you know some people That are downsizing from like let's say They're moving from a million dollar House to a half million dollar house and They have no loan that's awesome the Underwriting is very easy I'm very Confident they won't need a loan at the End of the day so there's just ways that We always want to look at not only the Short short term but the long run to Make sure people understand the Trade-offs of doing this and I have Another good story that happened last Week for us um speed is your friend in Tight inventory markets where people are Competing we knew this beautiful home One-of aind home near my house on the Beach came available we knew that the Operas were going to be strong and fast So what we did and this is a realtor Thing that Jason would be good to answer Questions for you on we gave them a 24-hour accept or decline offer we don't Want to wait for the open house to get Marketed we didn't want to wait for Every neighbor to come look at the Property and try to get their friends to Buy it we knew strategically that we had To off offer fast quick as a yes or no Answer so that we would not risk other Offers coming in and creating uh a
Bidding war so in our example we won Other offers may have come in afterwards After we're in contract so case in point Make make sure you work with the local Professionals that can get you that Strategy that gets you the home at the Best optimal way of doing that yeah and Then the terms of the offer I'm sure Were enticing to the seller if you're Offering a fast close no appraisal No Loan contingency um you're basically Just get through inspections in your in Your golden and so they might be more Willing to accept that offer than Waiting out for the weekend I've done That many times on offers you know Placing a deadline because in California If I don't put any deadline on there They can sit on your offer for three Days call everyone who's showed the House uh maybe even sharing your terms Of your offer um and um try to get more People to write offers on the property So I've done that as well and play Placing like a 24-hour turnaround time And saying hey take it or leave it and Uh had um clients get their offers Accepted from that so that makes sense So this is reason number $843,000 to use A realtor because the realtor listened To my advice They save the Borrower exponentially more than the Buyer broker
Fee right by doing this specific thing Of giving a 24-hour accept or decline They Sav themselves hundreds of Thousands of dollars on the purchase Price so I believe in this example the Realtor's buyer broker commission was Justly paid for because they save them Exponentially Higher by this strategy And again as Another offer came in much higher than Their offer you're saying right yeah Yeah so again work with professionals That know how to be creative and and can Evaluate the situation and provide value That's it's not an order-taking Environment if I was to go through one Of these companies on Prop teex stuff That offer would not have been accepted Because I did not have the Insight being Local to know what was important Triggers for the seller and the Motivation and so that's a different Style there of like working with the Best versus the Cheapest makes sense well Jim thank you Very much with to hop off here but yeah Thank you very much for your insights uh If you guys want to book a call with Jim And and myself uh to talk about your Real estate goals whether it's on buying A house or refinancing or buying a house Using a loan in this example then please Uh reach out to us I'll provide a link In the video description below Jim thank
You again uh thank you for joining us Really appreciate you thanks so much for Having me and again we can help with Buy Before you sell and bridg Lins awesome Man have a great day thank you forone For watching today's video like And Subscribe and we'll see you the next Video thank you so much [Music] [Music] A
