5 Tips on How To Use A Contingent Offer To Buy Your Dream Home
I’m looking out the window of our new 2 bedroom 1.5 bath condo that we just bought and moved into on Thursday and it inspired me to share with you 5 Tips on How To Use A Contingent Offer To Buy Your Dream Home!
If you want to buy your dream home, and are a first time home buyer or if you already own a property but don’t live in it, this is for you!
What is a Contingent Offer?
A contingent offer is when you make an offer on a property but it has a condition attached. If that condition is met, then you will buy the property.
Tip #1 – Only Buy a Property if It’s Total Cost Per Month is The Same Or Less to Renting
The reason this is here is that when you buy your dream home, I want you to also look into renting your dream home AT THE SAME TIME.
That will keep you in tune to the real market value of what you are buying.
It may be more cost effective for you to rent your dream home and buy investment properties with the money you save.
We were renting while we owned 2 investment properties.
We were ok with renting a nice place and keeping our investments.
We were thinking of buying another investment property after a year as well, but we realized we needed to live in a bigger space sooner…
Think about renting as an option and you will stay level headed and not overpay for a home to live in.
Tip #2 – Find Your Own Buyer
Find your own buyer who can be flexible as you make your contingent offer.
Our buyer knew that if the property we wanted to buy didn’t accept our offer, that we weren’t going to sell our property to him.
He understood that and was ok with being flexible.
Tip #3 – Negotiate a Fee Reduction from the Realtor
Our realtor charged 5%, and I asked him to reduce the rate he charged for the property we were selling.
He lowered it to 2%. That saved us over $8,000!!!
Tip #4 – Be Ready for a Deal By Figuring Out What You Want In Your Dream Home and How Much It’s Worth
You want to find your dream home quickly and easily be first thinking of what you truly want.
We were willing to pay market rental rate to own, so 700+ sq ft had to be $1,800 per month total expenses and $2,500 for 900+ sq ft.
We ended up wanting at least 1 and 1/2 bathrooms, with an elevator, and in a building that is well maintained.
We also required it to be in town, though preferred near the beach and with a nice view.
If we didn’t get that, we were going to rent.
Know what you want.
Do the same calculations for your area.
Tip #5 – Set a Deadline
I set a deadline to either rent or have an accepted offer by a date. It happened to be about 30 days or so.
Because of that deadline, I worked hard to find properties that fit what we wanted, look at them, and discuss them with my family.
The deadline is key to getting your goal!
Conclusion
We used these tips and now live in a beautiful spacious 2 bdrm condo just minutes walk to Waikiki Beach
Use these tips to help you find your dream home next month!
If you own a property now, you can look into contingent offers like we did.
It saved us money on the sale of our property with the reduced realtor fee.
You never know what will happen until you go for it!
About Mey Duldulao
Back in 2011 I had over $30,000 in credit card and line of credit debt, was living paycheck to paycheck and was stressed out over my lack of success in my financial life.
In April of 2016, I became debt free and had a monthly passive income stream. I quit my job on December 23, 2016, and started doing my dream work of mentoring others on what I did to create the freedom to quit my job.
In 2017 we bought our first condo in Waikiki, and we went on 5 weeks of vacation (including a 7 day cruise to the Mexican Riviera)!!!
In 2018 we bought our first investment property!
In 2018 we converted our first condo into our 2nd investment property.
In 2019, we sold our one of our AirBnB properties to our AirBnB manager to buy our dream home in Waikiki.
I spend most of my time doing what I dreamed of for years, spending my days with my son Jordan and my husband Jomel, enjoying motherhood and being a wife. I also enjoy researching Financial Freedom and sharing what I learn with my clients and on my blog.
If you want to learn more about how I can help take back control of your money and your time, then CLICK HERE, watch the free video and get started!