Buying subject to selling ?
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| 1 | Hi there , what happens if your offer is accepted subject to you selling , bridging finance set up , and let's say there's an issue selling basically it doesn't by the deadline agreed .. are you locked into still purchasing the new house ? I'm trying to work out best way to sell mine , thinking either the standard way as above or maybe selling first subject to purchasing , but would like some clarity please on the first one as I've never purchased and sold after before not sure how it works , thanks :) daz1968 - 2021-10-30 20:26:00 |
| 2 | It will depend on the wording of the clauses put in the contract. You can put subject to sale of your current property but if there is strong competition the vendor may not be willing to wait. What will commonly happen is a cash out clause is added for the vendor giving you typically 3-5 days to come up with the finance to go unconditional if they get a better offer e.g. cash buyer with no conditions. If you already have bridging finance set up to enable you to buy without your house actually selling then you would and pay both lots of finance until your house sells. depends how long you can afford to do that for if your first property is slow to sell. Always get your lawyer to review the sales and purchase contract BEFORE your sign your offer to make sure you are a) in the best position, b) your are protected if anything goes wrong. Remember the real estate agent is not working for you. In fact if you're not sure of the process I've found any decent property conveyancing lawyer will talk you through the basics before hand. We use one based in Lower Hutt for all our NZ purchases because they have been really great at clear and thorough communication. Edited by hers.nz at 9:18 pm, Sat 30 Oct hers.nz - 2021-10-30 21:15:00 |
| 3 | Thanks for the information , maybe it's just more clean cut to sell first subject to me finding something , that way in full control , might be harder to find a buyer though I guess daz1968 - 2021-10-30 22:15:00 |
| 4 | You can try for a longer than usual settlement but as you say that can limit your purchaser pool. The alternative is to rent between houses but then it's double moving costs and rentals are in short supply. The other way is to buy and then put your house to auction or a deadline sale so you have a certain date. The only issue can be the closer you get to having to settle your options are narrowed. As an example the house we currently live in passed in at auction and subsequently we negotiated a really good deal. The vendor had to settle on their purchase or default and unfortunately for them they hadn't left themselves much time. Do you know a good REA or know someone who bought/sold recently who can recommend their agent? It'd be worth getting appraisals and have a chat to sound out the market and see how they think your current property would go. Edited by hers.nz at 10:41 pm, Sat 30 Oct hers.nz - 2021-10-30 22:37:00 |
| 5 | Yes I've had an appraisal and think I've found a patient agent , I just need to find the right selling method for me as my last house I did a 5 month settlement with option to move fwd once I found something and got caught as market hotter than I thought , took 3 months didn't want to risk longer as missed out on lots and ended up with not what I fully wanted , plus lost abit of money in the gap.. just need to get it right this time , I think the heat of market gone now though in for a while daz1968 - 2021-10-31 06:28:00 |
| 6 | When subject to selling you must take all reasonable steps to sell. If you don't, you can be sued. johnston - 2021-10-31 08:19:00 |
| 7 | johnston wrote: that is such fun taking on those vendors. gabbysnana - 2021-10-31 11:20:00 |
| 8 | gabbysnana wrote:
Purchasers. johnston - 2021-10-31 11:36:00 |
| 9 | Yeah mum was about to do this a few weeks back. Vendors were agreeable to it because her offer was going to be head and shoulders above the competition and it had a tenant in place. sw20 - 2021-10-31 14:00:00 |
