A homeowner?s worst fear when selling is to end up on the street without a home. What if you decide to buy first? If you make an unconditional offer to purchase a property, you risk not being able to sell your own house and having to manage two properties for some time. It is very risky to buy before you sell. You cannot assume that a strong housing market guarantees you a quick sale. If the transaction is not finalized within the set timeframe, you could find yourself in serious trouble.
On the other hand, if you decide to sell before you buy, there is always the fear of selling too quickly and ending up with no place to live. It appears to be a catch 22 – do you sell or do you buy first? Yet, there is an alternative solution to this problem.
It is a matter of selling and buying at the same time, by adding certain conditions to reduce the risks either way. If you find your dream home before selling yours, make your purchase offer conditional on taking possession of the house at a future date. You can also add a condition of sale clause for your property, setting a reasonable timeframe. If you succeed in selling your house before buying a new one, you can stipulate a suitable date to transfer your property. You can also add a conditional purchase clause setting a reasonable timeframe.
The timeframe for selling your property and finding your dream home will vary depending on the region. It is best to protect yourself in both the purchase and the sale transactions. Your real estate agent can help you.
If you find your dream home, remember to make your purchase offer conditional on the sale of your house.