Caution when selling your house to buy another
August 4th, 2016 by Geoff Baldwin
Caution when selling your house to buy another…
It is common for people to make an offer on a property conditional to selling the one they already own but this process, if approached incorrectly, has several pitfalls and can be disappointing and/or increase the cost by many thousands.
Tread warily with ‘Subject To’ offers
In a market where high number so stock exists upgraders will often opt to place an offer subject to the successful sale of their existing property however this process needs to be considered carefully to avoid wasted time and disappointment, RE/MAX WA MD, Geoff Baldwin warns.
“Invariably, when a subject sale is negotiated, the sellers will include a clause allowing them to continue marketing their property to other buyers with a proviso that the subject buyers be given a period of time to go unconditional (usually 48 hours) after which the new offer is accepted”, he said.
“To avoid this situation upgraders should consider getting their existing property sold or at least under offer prior to placing an offer on another home and perhaps ask
for a longer settlement period to enable everything to come together.
“The other problem with making subject to sale offers is that they don’t excite a seller as much as being presented with a cash or a subject to finance offer because the latter comes with a predictable settlement date and hence there is more scope for negotiation.
“If an upgrader does decide to place a subject to sale offer then they should also try to negotiate a period whereby the property cannot be sold from
under if when a another buyer comes onto the scene”, Mr Baldwin said.
Media Contact – Geoff Baldwin