By Barbara Andersen · 19 September 2023
On the calendar, summer is finally drawing to a close. I hope you have been able to travel somewhere and get out of the suffocating heat we have experienced this year. Even if it is only for a short time, any time away from Phoenix in the summer is precious.
A few years ago my husband and I got the chance to travel in the United Kingdom. You know that name takes in the countries of England, Scotland, Wales and Northern Ireland. Of course I was noticing the houses for sale as we rode by, and the advertisements in the real estate offices as we were out walking. We were mainly in England and I kept noticing signs that meant nothing to me as a realtor from the United States. I saw ‘No Forward Chain,’ ‘No Chain,’ and sometimes ‘No Upward Chain.’ I just had to find out what that meant.
In the United States we are familiar with the concept that sometimes buying a new house requires being able to sell your old house. In fact MLS in Arizona has a category for that in our real estate listings. It would appear in a listing’s status as CCBS, meaning Contract Contingent on Buyer Sale. In other words, a Seller has accepted a contract on their house and the Buyer has said, ‘I can’t complete this purchase until my house sells.’ Why would a Seller accept this kind of contract? Well, it is possible the Buyer already has their house under contract and it will only be a matter of weeks before they can close on the new house. It might also look good to a Seller if there are lots of houses for sale and not many Buyers.
In England that idea of a sale being contingent on ‘the Buyer selling their old house’ is put on its head. Not only will the whole sale be contingent on the Buyer’s sale of their old house, but also upon the Seller’s ability to find and get under contract a new house. Yes, that’s what I said, you won’t be able to move into your new house until the Seller can also find a new place to buy. Can you imagine how this list of transactions could grow? Talk about a chain! Every Buyer will be stuck, even though they have put down earnest money, until the Seller can find a new place in which to move. Every transaction will depend on at least three properties, and maybe more!
I like the way we do it in the United States. Contingencies always have the potential to make things more complicated, but this idea of a forward chain just seems rife with opportunities for disappointment and stress. ‘No forward chain’ for me! But I can help you whether you are ready to buy or sell, and I will work with any contingencies you have. Just give me a call.
First published in The Bodeen Team’s quarterly client newsletter, Fall 2023.