I often get calls from folks and the conversation goers something like this, "I have my eye on a new house and would like to make an offer on it. How do I proceed?"
It all depends. (And sometimes, that's a diaper).
If you don't have a house to sell first, then it's quite simple. All you have to do is contact a lender and get prequalified so that you can present an offer with proof that you are financially qualified to make the purchase. Unless of course, you are blessed to have the cash for the transaction.
Then there is the situation where the inquirer does have a house to sell and does not have the resources to own two houses at the same time.
Because the market has been so brisk of late here in GA, it is extremely unusual for the seller of a house to accept a "Contingent Offer". What that means is that you make an offer on their house , which they accept, all the while marketing and hoping to sell your house. It is very unlikely that they will agree to take their house off the market until you get a contract on yours. Notice that I did not say "sell" yours. If a seller does take a contingent offer, it usually contains a "kick-out clause" which states that you have a certain length of time to withdraw your contingency offer or they sell the house to someone else. (Kick-out clauses can be for any length of time but most that I have seen are from 24 or 48 hours). Also, if you make a contingent offer on a house, expect to pay a higher price as the seller is in effect doing you a favor. So the short story is that you need a contract on your house before making an offer on another.
Next blog, I will briefly outline the procedure for purchasing a home in GA. Stay tuned......