A Sale Of Buyer's Home Condition is like dating someone, but they haven't updated their Facebook profile to 'In A Relationship'
You're together, but deep inside you know you're gone if someone better comes along. They don't even have to be as good looking. Just more stable.
Let me Explain
A Sale Of Buyer's Condition is when you purchase a home subject to your current home selling.
More simply, you've found a great home that you want to buy. But you need the money from the sale of your home to afford it. So you write an offer that says 'I will by this home as soon as my home sells.'
You and the seller agree on a price and the possession date.
You get a home inspection. Your mortgage broker finds you a mortgage based on what your current home might sell for. You get all your ducks in a row. You rush to put your home on the market. Our awesome marketing strategy takes over.
If houses had Facebook profiles, you would stalk your new home constantly. You'd gaze at it's beauty. You'd be the first person to like every status update and picture of a cappuccino that it posts.
But it's relationship status would still say 'Single'. Why?
It would still be on all the online house dating websites, like realtor.ca or Century21.ca. You'd find out that they're still taking showings dates behind your back.
Someone else can fall in love with the house and write an offer too. They can swoop in, wine and dine this house, and take it away from you just like the evil guy in every romantic comedy.
The seller can accept their offer if they like it more than yours. Their price might even be lower. Any offer without a Sale of Buyer's Home Condition is more attractive than yours. Like a guy with a more stable job. It's a better bet, more of a sure thing.
House break-ups don't happen quickly. They give you 48 hours notice.
You have 48 hours to decide:
- Walk away. This is the one that got away. Continue to stalk it on Facebook while you eat buckets of ice cream crying over the sink. But your heart will never be the same.
- Keep this relationship together by taking on a massive risk. Remove the condition and pray/light incense to every god on earth that your home will sell before you take possession of your new home. Religious intervention is rarely a smart financial decision.
Most times, you'll end up choosing #1. You'll get over your broken heart eventually. But all of the homes you see will now be compared to the one that got away.
Clients often ask us: should we sell our home first, then start looking? Or find a home, then sell ours? In most situations our answer will be: sell first. Get the highest amount of money you can for your home. We'll make the possession date far into the future. Then we'll find the next home for you to fall in love with.
Fully committed house relationships are always the most the romantic.