Guaranteed Backup Contract: Buying a House Before Selling

United Home Loans is happy to introduce a product offered by our partner, Home Sale Assured, that provides a Guaranteed Back Up Contract for your home. You can embrace the idea of buying a house before selling because you know, at the end of the day, your home will ultimately be purchased. 

Buying a House Before Selling

There are many benefits of employing a solution that will allow you to start shopping for a home right away. First, buying a house before selling allows you time to get the best offer on your home. Imagine, if the purchase of your next home is contingent upon the sale of your existing home within the same timeframe, you may be tempted to take one of the first offers that come along. But with a Guaranteed Backup Contract, you and your real estate agent have time to negotiate the best contract knowing that you don’t need to close before being handed the keys to your next home. 

Secondly, a Guaranteed Back Up Contract helps you qualify for your next mortgage more easily. Typically, if your home is not sold, your mortgage lender will need to take your current mortgage payment into consideration when calculating your monthly debts. But if the sale of your home is guaranteed, you can be pre-approved for a loan amount that will allow you to buy your dream home. 

What is a Guaranteed Backup Contract? 

A Guaranteed Backup Contract (GBC) ensures you are qualified for your new home loan by guaranteeing the purchase of your current home while providing you the opportunity to sell to a higher bidder and cancel the GBC. This is a non-lending product that provides peace of mind, freeing up the mental space to enjoy the buying process and avoid hesitation about continuing your home search in fear of your current home not selling. 

How Does it Work

• Our partner, Home Sale Assured, places a homeowner’s current home under contract, but the homeowner continues accepting offers 
• The homeowner can focus on finding their dream home and buying a house before selling while their real estate agent focuses on getting the highest offer for the current home
• The homeowner has up to 90 days after the new home closes to sell before the GBC goes into effect
• If, at the end of 90 days, Home Sale Assured ends up purchasing the home, they enlist the original listing agent to get the home sold to a new buyer
• Once the home sells, 90% of the proceeds are returned to the homeowner, leaving Home Sale Assured 10% to cover their transaction costs

Sound Too Good to Be True? 

The GBC program might sound a little too good to be true, right? It’s very much not. Home Sale Assured is a partnership we have developed that reduces friction during the homebuying process in cases where the buyer needs their home to sell in order to qualify or the buyer feels they need to stop their search because their home is not receiving offers. It is a great solution for buying a house before selling. 

Home Sale Assured’s motivation is not to buy up houses. They want you to succeed in selling your home for a great price and we want you to feel as comfortable and secure as possible in making an offer on your dream home. If you’re a current homeowner getting ready for your next purchase, get in touch!