Need to Sell before you Buy? What if there’s a better way?

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In the whirlwind that is our Rhode Island real estate market, it often feels like you need a secret weapon to successfully buy a home when you have to sell your current home in order to buy. But I may have found your secret weapon! If you’ve been wrestling with the challenge of how to secure an accepted offer while bound by a Hubbard Clause—a contingency that makes your purchase dependent on the sale of your current home—I’m here with some hopeful news and valuable connections that could be game-changers.

The Real Challenge: In a seller’s market, the competition is fierce. Homes sell quickly, and sellers favor offers that are clean and straightforward—especially those that come in cash. This reality can be incredibly frustrating for buyers who are ready to move but feel held back by the need to sell their existing home.

A Possible Solution: I’m constantly exploring tools that can lift these barriers for my clients. Recently, I’ve come across a couple of loan programs from AnnieMac that are designed to empower buyers and sellers just like you. I’ve had a few meetings with the loan officers and I think it’s definitely worth exploring!

Overview of the “Cash2Keys” Program

What is it? The “Cash2Keys” program is a financing solution offered by AnnieMac that enables homebuyers to make cash-equivalent offers on homes. Under this program, AnnieMac pre-approves and underwrites the loan before the buyer finds a property, which allows the offer to be presented as a cash offer. If the buyer encounters an issue that prevents them from closing, such as a financing snag, AnnieMac steps in to purchase the home outright, giving the buyer a six-month period to resolve the issue and complete the purchase. The buyer can still opt to conduct home inspections and depending upon the loan type and your financing we may need to include an appraisal contingency. We can, however, waive the Mortgage Contingency which is very appealing to sellers.

Who is it for? This program is designed for homebuyers who are facing highly competitive market conditions where cash offers are predominant. It’s particularly suitable for those who may have solid financial standing but are competing in markets where they are frequently outbid by cash buyers.

What problem does it solve? The “Cash2Keys” program addresses the challenge of making competitive offers in a market dominated by cash transactions. By backing offers with cash, AnnieMac helps to elevate the buyer’s offer to stand out as more appealing and secure to sellers, increasing the likelihood of acceptance. This is crucial in hot markets where traditional financing often falls short against cash offers.

What limitations does it have? While the “Cash2Keys” program offers a substantial competitive edge, there are some limitations and considerations:

  • Contingent on Financing: If the buyer is unable to close on the home due to financing issues, AnnieMac will purchase the property. However, the buyer must then buy the home from AnnieMac within six months, during which there may be additional fees involved.
  • Additional Fees: The fees associated with AnnieMac stepping in can vary, and it’s essential for potential participants to understand these costs upfront.
  • Not Suitable for Everyone: This program may not be appropriate for all buyers, especially those who have significant uncertainties in their financial situation or who may not be able to resolve financing issues within the six-month timeframe.

The “Cash2Keys” program is a powerful tool for buyers looking to strengthen their position in competitive real estate markets. By allowing buyers to make cash-like offers, it significantly enhances their chances of securing a home. However, the potential for additional fees and the requirement to resolve financing issues within a specified period mean that it’s important for buyers to thoroughly assess their financial stability and potential risks before opting into this program. Consulting with a loan officer to discuss the specific terms and conditions is advisable to determine if this innovative approach aligns with the buyer’s needs and circumstances.

Overview of the “Buy Now, Sell Later” Program

What is it? The “Buy Now, Sell Later” program, offered by AnnieMac Private Equity, provides a financing solution that enables current homeowners to purchase a new home before selling their existing one. This program involves AnnieMac stepping in to purchase the home on behalf of the buyer (as outlined above), allowing them to move in immediately, with the eventual sale of the old home following at a more comfortable pace.

Who is it for? This program is tailored for homeowners who are looking to upgrade or downsize but are constrained by the need to sell their current home first. It’s ideal for those in competitive real estate markets where quick action can mean the difference between securing a dream home and missing out.

What problem does it solve? In robust seller’s markets, offers contingent on the sale of a buyer’s current home are often less attractive to sellers, who favor more straightforward, non-contingent offers. The “Buy Now, Sell Later” program removes this barrier, allowing buyers to present offers that are as appealing as cash offers. This increases the likelihood of acceptance and reduces the stress and uncertainty of timing the market perfectly.

What limitations does it have? While the program is designed to offer significant advantages, it comes with potential drawbacks that might not make it suitable for everyone:

  • Additional Fees: If the buyer cannot sell and buy simultaneously, additional fees will apply, which can increase the overall cost of the transaction.
  • Eligibility and Terms: You must have at least 20% equity in your current home. The specific terms and eligibility requirements, such as creditworthiness and financial stability, can restrict who can effectively benefit from the program.

The “Buy Now, Sell Later” program is an innovative solution designed to give homeowners the flexibility they need to transition between homes smoothly. By providing the ability to bypass the usual sale contingency, it offers a strategic advantage in competitive markets. However, the potential additional costs and financial implications mean that it’s important for prospective participants to carefully consider their options and consult with a knowledgeable loan officer to fully understand the terms and determine if it’s the right choice for their circumstances.

This program is definitely worth exploring for those who find the housing market’s demands aligning with their personal buying and selling timelines. If you’re considering this program, connecting with an AnnieMac loan officer through a trusted real estate professional can provide you with the detailed guidance needed to make an informed decision.

Is It Right For You? While these options sound great, they’re not a one-size-fits-all solution. Every buyer and seller has unique needs and circumstances that might make these programs either a perfect fit or a no-go. That’s where I come in—my job is to dig into these tools, understand how they might work for you, and help you decide whether they’re worth pursuing.

In this market, knowledge really is power. Exploring every potential tool and understanding your options can make a significant difference in your real estate experience. If you’re curious about how these programs might work for you, let’s chat. I’m here to guide you through your options and ensure you have the best possible chance to succeed in this competitive market.

Let’s Work Together!


Feel free to reach out if you want more info on these programs or need help with anything else real estate-related. I’m just a message away, ready to help you navigate through the chaos with ease and confidence. Let’s make this journey a little less stressful and a lot more successful!