Should I Buy Or Sell First? Vernon Real Estate

jane-field-vernon-realtor Question: On a rapid market such as the one Vernon is currently experiencing, should you buy or sell first?

If you sell first, you run the risk of having sold and finding yourself facing a marketplace that has a low inventory of homes in your preferred areas and price range. More often than not you will manage to find something that pleases you, but there is some risk. I suggest that if you're going to sell before you buy, have your realtor negotiate a 60 or 90 day possession on your sale. That will increase the odds that you will have time for the right replacement home for you to come onto the marketplace.

If you buy first, at the very least you'll be at peace that you have already found the home you want. However, on this rapid market some sellers may decline offers that contain "subject to the sale of the buyers current home". If the sellers will entertain such an offer, to protect their sellers the sellers' realtors commonly recommend a time clause, also known as "a right of first refusal". This clause assures the seller that in the event the seller receives another bona fide acceptable offer then the (first) buyer shall have 24 hours (sometimes longer) to remove their conditions or their offer becomes null and void and their deposit will be returned to them. The seller then proceeds with the second offer unless the first buyer is able to remove their conditions.

If you are a buyer involved in this type of purchase contract you are well advised to see your banker as soon as your offer is accepted (or earlier). This way if you want to temporarily borrow the funds you require to purchase the replacement home, all the paperwork and approvals are in place. If the time clause is triggered you will know it's safe to remove your conditions and firm up your purchase, without worry. On most markets this is pretty risky and expensive. On our present strong market it has become much more commonplace. Borrowing the money at current, very low interest rates can make more sense than buying at a later date at a higher price. Remember, it's a rising market. Chances are very good your home will sell soon anyway, as long as you are properly priced and listed through the M.L.S. system for maximum coverage.

I should also add that if your current home has peculiar aspect to it (i.e. busy street, poor area, structural problems, moisture etc.) you'd be best advised to think twice before you borrow the money and remove your conditions. These factors may make your risk unreasonable.

Read when is the right time to sell Okanagan real estate from the start. Download a printable version and read it later.