Buying and Selling At The Same Time: The Challenges
Buying and selling simultaneously is like a juggling act, with the consequence of potentially being left without a place to live. Talk about stressful! However, subject-to-sale transactions are a way to bridge the gap between these two important steps in the home-buying process.
In a subject-to-sale transaction, you first make an offer to purchase your dream house, just like in any standard real estate deal. However, the purchase is contingent on the successful sale of your current property. The sale of your new home won’t happen until a buyer for your existing property has been secured.
This arrangement introduces a level of interdependence between the sale of your old house and the acquisition of your new one.
The benefits of these transactions include:
- Decreased stress: Subject-to-sale transactions provide peace of mind for homebuyers as they can secure their dream home without the pressure of moving out of their current residence before they’re ready.
- Avoid temporary accommodation: No need for stressful, temporary housing or a transition period where you have to store furniture.
- Flexible timeline: You’ll have significant control over the timeline of your move. You can set a reasonable timeframe for selling your existing home and coordinating the closings of both transactions accordingly.
While subject-to-sale transactions offer many benefits, they also come with some risks. If you fail to sell your existing property within the agreed-upon timeframe, you may lose the opportunity to buy your new home. Another sneaky part of a subject-to-sale clause is that it typically includes a 24 or 48-hour time clause, allowing a second buyer to step in and take over your offer should their offer be unconditional. You, the initial buyer, then have a limited window (either 24 or 48 hours, as agreed) to either remove your final subject-to-sale condition or release the offer to the second buyer. This can be a stressful time as buyers must act quickly to secure their purchase, preventing other potential buyers from stepping in during this timeframe.
The Process of Buying Subject to Sale
Your purchase plans begin by teaming up with a seasoned real estate agent like myself who is well-versed in subject-to-sale transactions. My expertise can serve as your compass, guiding you through the process. I make a great teammate!
Once we’ve found your dream home, we’ll work together to craft an offer that is subject to the sale of your current property. Within this offer, a carefully tailored clause is included, setting out the conditions and the timelines that will govern these dual transactions.
We will then collaborate closely to showcase and market your existing property in the best light! For example, BC folks love the outdoors, so if you have access to a yard, garden, or patio we’ll display it perfectly to peak interest. Upon securing a buyer for your current home, the subject-to-sale clause in your agreement is fulfilled, and your new home transaction can move ahead while you get to focus on this new chapter of your life!
Together, let’s explore subject-to-sale real estate transactions! I can support you through the transition, ensuring it’s as smooth as possible. I am eager to answer any questions you may have! Please reach out if you’d like to learn more.