MIX TIPS on buying a home subject to sale
For many people looking to make a move from their existing home it can be a minefield of decisions, in this article we cover what you need to know, the risks, the rewards and tips on buying a home subject to sale.
So what is ‘subject to sale’?
Subject to sale is a special condition in a contract to purchase a property that allows you to put an offer on a home, but the offer will only proceed after your current home is sold.
Why ‘subject to sale’?
Some of the reasons you would consider buying subject to sale can include:
- You have found your dream home and you only want to move if you can secure it.
- You don’t have the support or funds to move twice.
- You can’t afford to buy first and be stuck with two mortgages.
What are the risks?
There are always challenges when trying to buy a new home and although buying subject to sale can help negate some of the risks it can also add another set of challenges that need to be overcome.
These can include:
- A seller would in most cases choose a cash or subject to finance offer over a subject to sale.
- You may feel pressure to sell your home faster and for a lower price.
- If you don’t sell fast enough you risk missing out.
- You may have to offer a premium price to entice the seller to accept your offer and wait for you to sell.
Buying ‘subject to sale’
Successfully buying subject to sale in Hobart and its surrounding area are for those who are well prepared. Although there are some challenges to overcome, the following tips will help put you ahead of the game to ensure your best chance of success when buying subject to sale.
Steps for looking for your next home
- Start with a market appraisal. This will help determine the likely selling price of your current home and how long it might take.
- Prepare your current home ready for sale. Being ready to act fast when you find your dream home will fast track the process.
- If you need to borrow to help fund the next home, make sure to get a pre approval from your bank.
- Research the areas you might want to live and find out what properties are selling for in the area. Decide on a clear budget and goals so you can make smart decisions easily.
Buying subject to sale is one of many ways to get into your next home. If you think this could be a good option for you or to discuss your buying or selling needs please contact the expert team at MIX Property Group today.
