How will you proceed? Do you have enough equity to qualify for another mortgage?
Buyers frequently ask to put an offer in on a property conditional to selling their home. Let's consider the "subject to sale" offer from the Sellers perspective;
- In this scenario, the Seller is not guaranteed a firm sale since it's dependant on if and when the Buyers home sells.
- If the Buyers home is not even listed for sale yet, the Seller may not be confident that the Buyers are serious.
- If the Buyers home is already listed and the price is realistic, the Seller may accept tying up their home in a "subject to sale" offer if the price is good.
In addition to paying a premium price the Seller will most likely attach a 48hr clause which enables them to continue to sell the home to another Buyer should they receive another more favourable/higher offer.
The reality is that in a "subject to sale" offer the Buyers negotiating position may be weakened so expect to pay more.
Now, if all parties agree to a "subject to sale" offer and if the Buyers are lucky enough to receive a quick offer on the sale of their house, the Buyers may find their negotiating position again unfavourable as the Buyers will be under pressure to accept any offers on their house in order not to lose out on the dream home to someone else.
My suggestion is that unless it’s a rapidly rising market; first list your home for sale and then begin the process of shopping for a home.
The advantage of listing first is that when you sell your house you will know exactly what you have to spend on the next home. You can take your time and try to negotiate the best price possible.
You can then act quickly and confidently make an offer on your dream home. Having already sold you will be in the strongest position to once again negotiate the most favourable price and terms.
Listing first saves you money!