Sale of Purchasers Property
Not every family is in a position to own 2 homes. In fact very few are. The overhead of most families would not allow for 2 mortgage payments 2 tax bills, two heating bills and all the other additional costs associated with home ownership.
Also, most families need a place to live. Most cannot just sell the house they are in without having a place to go. Camping just isn’t an option.
So how does a family that wants to move into a different home but also wants a roof over their heads manage ?
The SPP – Property a buying strategy
1. The Buying family starts getting their home ready to go to market. This is a critical step.
2. At the same time this family starts looking for the home they want to move into.
3. When the next home is found the buyers real estate agent will prepare a “conditional” offer. This offer will include a number of conditions. But for sure will be an S.P.P and an escape a clause. The S.P.P. will allow for the Buyer and Seller to enter an agreement where by the buyer agrees to buy the home and the seller agrees to sell it for an agreed upon amount of money with an agreed closing date all within an agreed time frame. This allows the buyer to move forward.
The Buyer will start selling their home as quickly as possible – they know how much they need to get from the sale in order to buy the next one, and they know the time frame they have to sell in. It’s full speed ahead.
Being Ready For This Time Is Critical
So Is The House SOLD ?
NOT Quite. Even though there is an Agreement in place, it is a Conditional Agreement – the house is not SOLD until all the conditions are fulfilled and finalized.
The Seller does not just sit back and wait the condition to be met. The contract will include an escape clause – a phrase that allows for the seller’s agent to continue marketing their property And should a second offer come forward, the seller can receive, review and negotiate with the next buyer. If they are able to come to an agreement with the second buyer – they can then notify the first buyer that they (the first buyer) have the agreed time frame to remove all conditions or step aside and let the seller work with the second buyer. (The escape clause will have a negotiated time frame which provides the first buyer a window to remove all conditions) If they remove the conditions then they bought the home !!
This can be a complicated and emotional process.
Being licensed since 1989 and having helped 100’s of families make these changes we can factor out the complicated process.
But emotions can at times be a bigger challenge. When a family makes an offer to buy a new home it means they really like it. REALLY LIKE IT !!! And the idea of maybe not being able to actually buy it can be very difficult. But, with the right agent and right planning you can move through this time as seamlessly as possible.