OPTION 1: Before listing your home, find your next property and offer to purchase it “subject to the sale of” your current home.
Pros

• No risk that your home sells without having a new property to move into.
• No risk of having to rent or find temporary accommodations while you search for your new property.
• You’ll know how much your new property will cost before you sell.

Cons

• An offer with a “subject to the sale of” clause is not appealing to most Sellers and puts you in a weaker negotiating position to get a fair purchase price.
• If the market is busy and a property is priced well, many Sellers will not accept offers that have a “subject to the sale of” clause.
• The Sellers will add a time clause, typically 72 hours, that allows them to accept another offer while they wait for your home to sell.  
• You may feel rushed to sell your home, thereby getting less money for it.
• If you find a property that already has an accepted offer “subject to the sale of”, the Sellers are unlikely to invoke the time clause for another offer with the same contingency.  

Tips: Get your home ready for showings and have your Real Estate Team schedule the professional photos and virtual tour as soon as you decide that you want to move. This will save precious time getting your home listed when you find a property to buy as time will be of the essence.
 

OPTION 2: List your home before you find your new property.
Pros

• When you find a property, your “subject to the sale of” offer may be more attractive as your home is already listed on the market.
• Good timing. You may receive an offer on your home at a similar time as you find a new property.
• You may receive a strong offer on your home, even if you haven’t found your new property. This can often make selling your home without having your next property lined up more appealing.

Cons

• You may find a suitable new property before your current home has any interest, offers, or is sold.
• Your home sells before you have found a new property, thus having to rent and/or find temporary accommodations.

 Tips: If you receive an offer on your current home before you find a new property, try to negotiate a longer closing date. This will allow you more time to find your new property and match your closing dates. Be aware of the rental market and time of year. Most areas in BC are short on rentals especially during the VRBO season.
 

OPTION 3: Sell your home before you start seriously looking and pursuing your next property.
Pros

• You will be a “Cash Buyer” and in the strongest negotiating position to obtain your next property.
• You will know how much you received for your home which can help in deciding how much you can spend on your new property.
• You do not have to submit offers that are “subject to the sale of” your home.
• Market prices go down while you look for your new property.

Cons

• Unless you find a new property to purchase with the same closing date of the sale of your home, you will need to find temporary accommodations to wait for the closing on your new property or however long it takes you to find your new property.  
• Market prices go up as you look for your new property.

Tips: Have your Real Estate Team show you potential properties while you wait for your home to sell. This will help define your property wish list for you and your agent for when the time comes to purchase. In some cases, you may find a suitable property and get a head start on due diligence and strategy on how to obtain it.
 

OPTION 4: List your home contingent to finding a home. This option is the least viable as most Buyers and Agents will not pursue a home with this type of contingency.
Pros

• No risk in your home selling without a new property to move into.
• No risk having to rent or find temporary accommodations while you search for your new property.

Cons

• No offers! A Buyer is unlikely to pursue a property with this contingency: they will have to spend hundreds of dollars on home inspections and other closing costs with no guarantees that the sale will proceed.

SUMMARY
Keep in mind that selling and buying can be a dynamic process and all parties need to be adaptive and open.  Our Team works hard to create individual strategies that fit specific needs. Reducing stress, selling your home for the highest price, and helping you purchase a new property that you’re excited about is our goal! If you’re serious about moving, or curious about our home selling/buying strategies, please don’t hesitate to contact us to discuss a game plan that will work for you.

Have an amazing start to the year!