Imagining Your New Home
It is important that all parties involved in the purchase of a new home are like-minded, before you start looking. For you, this may mean getting the approval of parents who are helping financially, or finding compromises with your partner.
Firstly, you should discuss where your new home will be located. Commuting time to work, the type of neighborhood, and the quality of schools are all considerations.
Next, what qualities or amenities do you want in a home? Is someone passionate about an attached garage, or a finished basement? It is often a good idea to make two lists; one with what you need in a home, and the other with “nice-to-haves” that could be compromised for a home that meets all of your “need” factors.
At Manter Realty, our experienced real estate consultants work with you in achieving a clear picture of your new home, by raising questions that help you to focus your energy where it really counts.
Moving Up, or “Right-Sizing?”
Unless you qualify for a “bridge loan,” the purchase of your new home will be dependent upon the sale of your current one. You may be wondering, “Do I sell my present home first, or do I secure a new home before I sell?”
Generally, if you make an offer on a property contingent upon the sale of your home, expect the offer to come back with a “kick-out clause.” This contractual clause states that, if the seller receives another acceptable offer from a buyer with nothing to sell, you would have a specific amount of time (usually 48-72 hours) to secure a contract on your home, or obtain financing, such as a bridge loan. Otherwise, your purchase contract becomes voidable. While your deposit money will be returned, home inspection and bank appraisal costs are not reimbursed.
Either way, there are various issues to consider. Our experience has been that buyer prospects for your home are perhaps more willing to wait for you to find suitable housing, than is the seller of a home that is in demand.