To follow on from our last post regarding the different ways to buy a home when you’ve got one to sell, we’re now going to take a look at making offers ‘Conditional of Sale’. This is the way most people go about buying a new home when they’ve got one to sell, and when it pulls off, can be a fantastic option to secure a home prior to having to sell your own. What we’re doing here, is making an offer on a property on the condition that you sell your own home, so securing a contract on your new home, before you even necessarily put your home on the market. (there can also be other conditions of course). The beauty is, your property doesn’t even need to be on the market to be able to make an offer conditional on the sale of your home, so there is the ability to secure a home before listing your home for sale, and going through the joys of cleaning up to be ready for private viewings and open homes. As with everything in life, there can be downsides to this.
Firstly, with the vast majority of properties being sold via Auction, and the fact that you can’t purchase through an Auction campaign with conditions, can mean that finding a property that you can make a conditional offer on fairly limiting, so we are reducing the amount of properties available to purchase quite significantly. Secondly is because selling your home doesn’t always happen overnight, it can be a fairly open ended clause for the seller to be comfortable with, which means you may have a cash out clause to deal with. This means if someone else comes along with an unconditional offer, you have a set amount of days to go unconditional yourself, so can mean losing the property altogether if yours hasn’t sold, or we have alternative options in our pocket.
With our current market conditions, you may be up against other parties with less conditions than you, so it can further limit your buying opportunities if you’re in competition with other buyers with less conditions, and vendors that have a need for a time sensitive sale. In saying this, if the opportunity arises to secure a contract conditional on the sale of your home, it can be one of the easier ways to secure a home in this manor, and can also be significantly cheaper than bridging finance, as in most cases you don’t own two homes at the same time, other than sometimes there is a short period between settlement dates.
Again, there’s a lot more to consider with making an offer conditional on the sale of your home, and it’s important to get proper legal and financial advice for your individual circumstances prior to making any offers. This post is just to give a brief outline of the possibilities that this may offer in a broad sense.
The content of this post if for general information only, and does not constitute regulated financial advice for retail clients. Whilst every care has been taken to supply accurate information, errors & omissions may occur. Accordingly, Square One Home Loans (FSP775153)or any of its directors, contractors, consultants or employees accept no responsibility for any loss caused as a result of any person relying on the information supplied in this post. For financial advice to your personal situation, please reach out by contacting Joshua Martin (FSP581987).