Selling Your Home To Buy A Farm
Many farm buyers must sell a house in order to purchase a farm. There is often a lot of anxiety about timing and it’s no wonder why. Buying and selling at the same time is stressful no matter how you cut it. There are a lot of moving pieces when it comes to buying and selling real estate. How you plan your transactions depends on the market and your comfort level. There are two ways we typically handle buying and selling at the same time when it comes to contingent farm buyers.
Waiting To List…
…until you have a ratified contract on your new farm. If you are selling a home in a neighborhood where things are moving quickly, it may be best to wait until your offer on your new farm has been accepted. In the offer, you may include a contingency that accounts for the sale of your current home. You will have a certain number of days to put the home on the market and a certain number of days to get it sold.
In this case, it is wise to start getting your home prepared for sale before you seriously start looking. Typically, I like to have all of the listing materials ready to go so I can show them to the listing agent when you write an offer. This reassures a seller that your home is indeed ready to go on the market. Remember, sellers are assuming some risk here because your contract with them depends on your ability to sell your current home.
…and then starting your search for a farm. If you are selling a property that may take a bit longer to sell because of price, location, condition, or property type, then you will want to list first and then start looking. However, it is best to wait to list until you’ve seen more than one property on the market you would feel comfortable writing an offer on. In this instance, you would list your home and either write a Home Of Choice contingency into the contract allowing you time to find a farm or make sure you have a soft place to land in the event that you sell your home first. The thing about a Home Of Choice contingency is that it shifts the risk from the seller of your new farm to the buyer of your current home. If you don’t find a property to purchase, the contract on your home will fall though. Some buyers may not be willing or able to accommodate this type of contingency.