Making an offer conditional on selling your house. How does it work?
Should you Buy or Sell your house first?
First step is to have a broker write up an offer with the standard conditions of the inspection and obtaining financing. You may also add other conditions such as inspecting certain documents related to the house. For example, if you know that an inspection has already been done on the house, you may ask to review the already existing report to see if there are any red flags.
If you need to sell your house to purchase this new property, the broker will make the purchase conditional on selling your house and will put a date limit for which you will have to sell in order to get the new house. If you do not sell your house by this pre-determined date, the offer will become null and void, or, you may be able to extend the delay, if both parties agree.
If the Sellers agree to letting you sell your house as a condition, their house will remain on the market until you fulfill all your conditions.
If another offer comes in while you are trying to sell your house and they accept it, the new buyers will have to show proof of financing, do their inspection and fulfill all their conditions at which point you will be given 72 hours to sell your property or remove the conditions.
If your house has not yet sold and you are unable to get an accepted offer during the 72 hours or you unable to remove the condition of selling your house, you will unfortunately lose the house to the new buyers.
One tip is to sell your house first. If your buyers agree, you may put a condition that states that you accept an offer with the condition of finding a house in the next 30 days for example. This way, you will already have a buyer.
Not always easy, but with the right broker who makes sure all deadlines and rules are respected and observed, you will come out a winner.
Monique Assouline is a Montreal Real Estate Broker helping Buyers and Sellers since 2005. Need help or have a question? She can be reached by email at firstname.lastname@example.org or by phone or text at 514-219-5897