Why Sell Your Home Before You Buy?
For many people, relocating to a new area is a major decision. One of the first things that often comes to mind is the need to find a new home. Before looking for a new place to live there is often an even more important step. It is generally a good idea to sell your current house before you buy a new one. Why you ask?
Most people can only afford to own one home at a time. If you are in this situation, and you currently own one, you will need to sell it so that you can afford to buy a new one. When you sell your home first, your financial situation will be on much firmer ground. You may or may not need a mortgage to buy your next home. If you do need a mortgage, it is important to get pre-approved before going home shopping.
An offer to purchase real estate can contain conditions that must be satisfied before a buyer will commit to purchase the home. Offers subject to things like financing for the purpose of obtaining a mortgage are quite common. A buyer can make an offer subject to the sale of the buyer’s home.
The Time Clause
Most sellers will not accept offers subject to the sale of the buyer’s home without having a time clause written into the offer. The time clause provides the seller with a mechanism to deal with better offers that may be presented by other buyers.
A Subsequent Offer
When an acceptable offer is subsequently received from another buyer and the time clause is activated, the first buyer generally has only a very short period of time to either remove the conditions on their offer, or have their offer become null and void.
Buyer Stress and Disappointment
Offers subject to the sale of homes present risks to the buyer who makes them. The buyer may not be able to sell their home in the specified period of time, and there is risk that another buyer may submit an offer that would trigger the time clause. In both cases the buyer could lose out on their dream home and face major disappointment. They may also lose money if they had already spent money on inspections of the home and property. To avoid this kind of situation why not sell real estate in the Comox Valley before you buy your next home? The reward may be a more stress free adventure to search for, find, and purchase your dream home.