Contingent offers have been popping up a lot in our market, so I want to clear up a few myths and misconceptions you shouldn’t believe about this type of offer if you’re a seller and you receive one.
First of all, they’re not always bad. Sometimes, they can even work to your advantage, although each situation is different.
Obviously, a contingent offer that’s dependent on the sale of another home can be a disadvantage because it involves something that’s out of your control. That offer, for example, could depend on a home that’s not even on the market yet, or one that’s located in a neighborhood that doesn’t support its price point.
A lot of homebuyers out there are chasing after the 30-year fixed mortgage, but does that make sense in your situation? Today I’ll tell you why I’ve always attained 10-year fixed terms for my loans and how this type of financing can benefit you.
I’ve always done 10-year financing because I’m aware of where I’m at in this stage of my life. When my wife and I bought our first townhome in Hillcrest, we knew we probably wouldn’t be there for 30 years—probably not even for six. Why, then, would we go with a 30-year fixed mortgage, which would raise our interest rate and reduce our purchasing power? For that property, we used a 10/1 ARM loan, and when we sold that house and bought our next one, we had the same type of loan.
The average American stays in their home for about seven to eight years, but in Southern...