Did you find that perfect home to buy but still have to sell?
When it comes to Buying and Selling Real estate we often get the question, should I be buying before selling my home?
A year ago, homeowners were buying before selling with confidence their home would sell quickly. As the Kelowna real estate market changes from a seller’s market to a more balanced market, homes are taking longer to sell. So, there are some things to consider if you are buying before selling.
There are risks associated with buying before selling. The most obvious would be owning two homes. Possibly even carrying two mortgages. Not only could this be financially staining, but changing market conditions pose a risk.
To lower the risk when buying before selling, Kelowna Realtor, Tracey Vrecko, suggests making an offer on a home with a subject to the sale of your existing home, with a time clause…
In simple language……Your offer to purchase would be condition upon selling your home.
So how does this work?
A “traditional” offer is written with all the common terms and conditions. Then, an additional condition is added to the contract that allows you time to sell your home. Additionally, Buyer and seller will need to agree to;
A timeframe to sell the existing home (a common time frame is 30 days)
A time to remove this condition, called “time clause” in the event of another accepted offer ( the average is 48 hours)
What are the risks?
When the offer is accepted, (known as a “time clause offer” or an “offer subject to the sale of”), the home remains on the market and is still available for sale to other potential buyers.
In the event an offer presented and accepted while your current offer is still active, you will receive a notice invoking the “time clause”. You will have the agreed upon time (usually 48 hours) to remove all of your conditions or your offer will be void and the second offer will take effect.
Sounds complicated…. Not really.
“This is a really good option for buyers looking into buying before selling. It is the peace of mind that you are not committed to owning two properties at once.” Says Vrecko.
Buying and Selling real estate can be complicated. This one of many examples where hiring a professional real estate agent is important. A real estate agent can guide you through this process and offer advice to ensure a successful purchase and sale of your home.
Call the team at Quincy Vrecko and Associates with any questions related to real estate. The team has extensive knowledge of the Kelowna real estate market and would be happy to help. Read some of our success stories from our past clients.