Selling your home before buying another home? It will depend on everyone’s financial position. Some people can afford to carry two mortgages for a short time. Sometimes clients have to get bridge financing. However, bridge financing is expensive. You will have to talk to your mortgage broker or banker about your options. And you will have to be sure you are comfortable ‘carrying two homes’. It is clearly not for everyone.
There is a middle solution which is the ‘sale of buyers home clause’.
You put in an offer to purchase a home with the condition that you will have to sell your own home first. There are some very important things to note about this clause.
Eventually, it will depend on the seller if s/he wants to accept this condition. The seller is in control. And much will depend on the market at that moment.
If it is a seller’s market, then chances are another buyer may come along, and the seller will not be inclined to accept this condition. Is the home just on the market? Again, a seller will most likely wait before accepting this clause. Our personal experience is that you can always try. Do not be afraid to ask!
Is it a buyer’s market? Then chances are bigger that sellers will accept this condition.
When you decide on the strategy to work with the condition ‘sale of buyers home’, there are several very important factors you need to know about. Discuss those with your realtor. As well, discuss the advantages and disadvantages of all scenarios. Much will depend on your personal situation.
In short, there are 3 important things to consider:
1. When you offer on a home with the condition ‘sale of buyers home’, your own home must be on the MLS within 24 or 48 hours.
2. When a second buyer comes in, the seller can negotiate with this second buyer, and you will have to waive all your conditions within 24 or 48 hours.
3. Sellers don’t have to disclose they have an accepted offer on the house, meaning that other buyers can put in an offer.
Those 3 points are explained in part 2 of this condition Sale of buyer’s home….