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  • Writer's pictureJacqui gorman

Why Selling Subject to Contract first is the wisest move in today's Real Estate Market


 

In today's ever-evolving real estate landscape, making savvy decisions is paramount, especially when it comes to navigating property transactions. While the urge to secure your dream home before selling your current property may be strong, there are compelling reasons why adhering to a "selling subject to contract" approach might just be the most prudent strategy. Here's why:


  • Financial Certainty: Opting to sell subject to contract before purchasing a new property ensures financial stability. By knowing the precise amount you'll receive from the sale, you'll gain a clearer understanding of your budget for purchasing your next home. This approach minimizes the risk of overextending yourself financially and provides a robust negotiating stance when making offers.

  • Enhanced Negotiation Leverage: Sellers are generally more inclined to entertain offers from buyers who have already secured a buyer for their existing property or are actively in the process. By positioning yourself as a proceedable buyer, you gain a distinct advantage over other potential buyers who are still in the midst of selling their properties. This can lead to more favourable negotiation terms and potentially even a reduced purchase price.

  • Stress Reduction: Attempting to juggle the logistics of buying and selling simultaneously can be incredibly stressful. It often involves coordinating timelines, managing multiple transactions, and grappling with the uncertainty of whether your sale will go through in time. Selling subject to contract first allows you to focus solely on finding your next home without the added pressure of impending deadlines or bridging finance.

  • Elimination of Contingencies: In a competitive market, sellers may favour offers without contingencies, such as the sale of another property By selling subject to contract first, you eliminate the need for this contingency, making your offer more appealing to sellers and increasing the likelihood of acceptance.

  • Market Dynamics: Real estate markets are subject to fluctuations, and the timing of buying and selling can significantly impact your financial outcome. In a seller's market, where inventory is scarce and demand is high, selling subject to contract places you in an advantageous position to capitalize on favourable selling conditions. Conversely, in a buyer's market, where inventory is plentiful and prices are more negotiable, selling first provides the flexibility to wait for the right buying opportunity.

  • Strategic Financial Planning: Selling subject to contract allows for more effective financial planning. With a confirmed buyer for your existing property, you'll have a precise understanding of your available equity when purchasing your next home. This enables you to make informed decisions regarding down payments, mortgage options, and overall affordability.

 

In summary, while the allure of securing your dream home before selling your current property may be enticing, the benefits of selling subject to contract first are undeniable. From financial security and negotiation power to reduced stress and market flexibility, this strategic approach positions you for a smoother, more successful real estate journey. So, before embarking on your house-hunting expedition, consider the advantages of selling subject to contract it could be the key to unlocking your next chapter in the perfect home.

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