I want to shine a light on something that might sound a bit real estate agent jargon-y but can be a game-changer in your real estate journey—the Hubbard Clause, also known as a Kickout Clause. This little gem comes into play when a buyer’s offer depends on selling their current property. But hang on, even if you’re not in this boat, understanding a Hubbard Clause can still give you an edge. Let’s dive in together and unravel this puzzle!
The Hubbard Clause: Your Ticket to Tackling Real Estate Challenges
Walking in Shelly’s Shoes: A Real-Life Scenario
I helped Shelly purchase her first home in 2018 in the Elmhurst neighborhood of Providence. Fast forward to earlier this year and she let me know that she and her partner really wanted to upsize to a charming home in Cumberland–they loved the Providence home but wanted an additional full bathroom, another bedroom that could be used as an office, and (most importantly) a large yard for their recent family addition of two rescued dogs. But she needs to sell her current place in Providence to make the move. Now, you might be thinking, “Hey Jess, why not just sell and buy, easy peasy?” Well, that’s where the Hubbard Clause takes center stage, making this dual transaction a whole lot smoother.
Expert Insights: Unveiling the Hubbard Clause’s Magic
As your trusty guide in the world of real estate, I’ve walked this path with many clients, and the Hubbard Clause is like having a secret weapon. It gives buyers like Shelly a set timeframe to get their existing property under contract before they can confidently move forward. Now, let’s zoom in on how Shelly’s journey unfolds, step by step.
Understanding the Mechanics: A Peek Inside Shelly’s Strategy
Picture this: Shelly and I sit down to plan her journey. We start by nailing down the current value of her Providence property—purchased in 2018 for $325k. With smart updates and market shifts, its 2023 value is estimated between $460k and $480k. Armed with this knowledge, we’re ready to tackle the next phase.
Budget and Lender Chat: The Backbone of the Journey
To make her Cumberland dream a reality, Shelly’s budget needs to align with the local market. Cue a heart-to-heart with her lender, one of my top lender partners and the pro she knows and trusts from working with them in 2018. With a target monthly mortgage payment and a pre-approval in hand, we’re good to go. The median list price in Cumberland is around $649k in August 2023, and Shelly’s comfortable placing around $205k on the closing table along with closing costs.
Preparation is Key: Setting the Stage for Success
Time to prepare for the grand move! Shelly gets her Providence property ready for a quick listing by addressing a few minor issues and collaborating with my team to ensure everything’s in top shape. That prep included a pre-listing home inspection which will potentially give buyers the peace of mind they need to waive the inspection contingency, along with my top staging tips. My Listing Coordinator, Sarah, scheduled the photos and video shoot, worked with Shelly to complete the Disclosure package, and also completed the setup in mls. This preparation enables us to hit the ground running when the right Cumberland home pops up–all we have to do is press GO and the listing will be live!
But wait, I hear you asking, where does the Hubbard Clause fit into this puzzle? I’m getting there!
Hubbard Clause in Action: Craft Your Winning Offer
So, Shelly’s dream home shows up—a historic Colonial in Cumberland listed at $599k complete with a fireplace in the kitchen, wide plank floors, two full bathrooms and four bedrooms plus a huge fenced yard ideal for their fur-babies. This was THE ONE! The offer strategy becomes our paintbrush, and we’re crafting a masterpiece. We tailor the offer details, slide in an escalation clause as well as an appraisal gap to outshine competition, and tweak contingencies to align with Shelly’s needs.
And yes, you guessed it—the Hubbard Clause makes its grand entrance. Our offer promises a quick listing of Shelly’s Providence property, with a signed Purchase Agreement within 10 days. If we can’t meet this deadline, the sellers have the option to explore other avenues unless we remove the contingency. It’s like setting the clock ticking, adding a dash of excitement to the mix! Without the Hubbard Clause the sellers would have no assurance–when would we list the home, when would a contract be due, when is the inspection due, etc. It’s a win-win because the Sellers have the details they need to feel confident that they’re working with a buyer that can get to the closing table. And it’s my job, as your agent and advocate, to convince the Seller’s that we are able to be successful. All that prep work now comes to fruition!
Why Should You Care About the Hubbard Clause?
Even if you’re not in Shelly’s shoes, understanding the Hubbard Clause can be a real game-changer. Imagine you’re a buyer, submitting an offer where the sellers have a Hubbard Clause on the property they intend to purchase. Knowing this tidbit can help you tailor your offer strategy to stand out from the crowd. Want to talk through that–great! Let’s chat and I’ll give you specific examples.
Whether you’re navigating a simultaneous buy and sell situation like Shelly or just honing your real estate knowledge, the Hubbard Clause is a tool you’ll want in your kit. As your go-to Realtor, I’m here to demystify real estate and guide you through the twists and turns. Remember, whether it’s your first home or your next one, with the right strategy, a dash of innovation, and a potentially a touch of Hubbard magic, your real estate journey can be both smooth and exciting.
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