When Nancy made the difficult decision to leave her San Jose home of 30 years and move to Elk Grove, California, to be closer to her daughter and grandchildren, she knew it wasn’t likely to be an easy process. Finding a new house, submitting an offer, selling her current property in order to complete the purchase process, and then finally making the two-hour move would require a delicate balance of patience, logistics, and luck.
So when Nancy received an excited call from her daughter, saying, “I found your house, Mom,” she knew it was time to act. With the help of top San Jose-based real estate agent Kelly Baldwin, Nancy made an offer on the home.
Sadly, so did several other hopeful buyers, and Nancy’s offer was not accepted: she had to include a sales contingency to unload her existing home, and her down payment was adequate, but not sizable.
Disappointed but undeterred, Nancy and Baldwin strategized how to best move forward. They planned to put Nancy’s house on the market in May, but without the available cash for a down payment toward a new property, and with coronavirus restrictions adding a further layer of complication, the need for a creative solution became clear.
Enter HomeLight Trade-In. Using HomeLight Trade-In allowed Nancy to submit another offer on the Elk Grove house, this time with a larger down payment and no contingencies.
What is HomeLight Trade-In?
Much like trading in a used car provides immediate cash to put toward a new vehicle at a dealership, HomeLight Trade-In offers a convenient option for homebuyers whose funds are tied up in their current home:
- HomeLight works with your real estate agent to make and guarantee an offer on your home; you’ll get paid when you purchase your new house.
- Without worrying about having to sell your home first, you can confidently make a strong offer on a property — with cash available and no home sale contingencies.
- Move out only after you’ve closed on your new home. Because HomeLight’s price is guaranteed, there’s no scramble to pack up overnight.
- HomeLight continues working with your agent to sell your previous home on the open market. If, after fees and selling costs, the property sells for more than what HomeLight paid for it, the additional profit is yours.
It’s no secret that sellers like to see cash offers — if not in full, at least in the form of a generous down payment. And if buyers need to sell one home before closing on another? This adds a contingency that, depending upon market conditions, could take weeks or even months to fulfill. Considering that 38% of buyers secure their down payment through the sale of their primary home, avoiding the traditional market waiting game can mean the difference between losing a dream home and sitting at the closing table with keys in hand.
For motivated buyers with a strong credit history, the use of HomeLight Trade-In removes the selling contingency while simultaneously providing cash towards a new property. Just like trading in your old car!
Is there a catch?
To buy a house with HomeLight Trade-In may seem like an unconventional route, but with the rise in popularity of iBuyers and services like HomeLight Simple Sale, simplifying the legwork of a real estate transaction is quickly gaining favor among buyers and sellers alike.
Nancy admits to wondering, “How much is it really going to cost compared to if I just put my house on the market and make contingency offers until I could get myself to a place where I’d get an offer accepted?”
“But I really didn’t want to do that,” she adds. “This is not the way I wanted to spend my time.”
With the help of HomeLight Trade-In, Nancy was guaranteed $957,440 for her San Jose home, which freed up additional funds to use toward a down payment and removed that pesky sale contingency.
Teamwork makes the dream work
As fate would have it, the pending deal on Nancy’s dream home in Elk Grove fell through. Now, with more than $260,000 in cash and the ability to move quickly, Baldwin wrote up a new, ultra-competitive offer with no home sale or financing contingency and — this time — the offer was accepted.
Nancy was able to close on her new home, and she now lives just three doors down from her grandchildren.
“The process went as smoothly as I could comprehend to make it happen,” says Nancy. “As we were working through it as a team, I felt like it was so important to have both my Realtor team and the HomeLight teams in sync with each other and explaining every step of the way what was going on.”
“It’s really like a one-stop shop,” Baldwin agreed.
“We have done transactions before where clients also need to sell their home in order to purchase, and I can assure you that it’s not as easy as this one was. This was definitely a breath of fresh air.”
Not one, but two happy endings
Not only did Nancy successfully close on the perfect home in Elk Grove, but after investing $50,000 in repair and renovation work once she moved out, her San Jose property sold for an unexpected $1.3 million.
“I was actually blown away,” said Nancy. “I mean, goosebumps; I was almost crying on the phone with Kelly when she told me what the offer was.”
Thanks to HomeLight Trade-In, Nancy was able to:
- Make a competitive, timely offer on her new home
- Complete necessary repairs and make useful upgrades to her previous home after moving out
- Receive full market value for her home through a hassle-free sale
“If it weren’t for HomeLight and if it weren’t for my great Realtor and everyone shepherding me through, I would not be in the place I am today. I’m so excited. I love my new house.”
Header Image Source: (Artazum / Shutterstock)