Well that's exciting!
You've lived in your home now for some time, paid down a the mortgage, put some sweat equity into the home and it's time to reap some of the rewards of your hard work.
You've been searching for your next home and found it!
Like most people, you need to sell your home to be able to afford the purchase of the next one.
There are two common ways to purchase the new house;
1. Write an offer without the sale of your current home as a condition. This means if your offer is accepted, you've bought that home and if you're unable to sell yours before you take possession of the new one, you own two homes.
This is the riskier of the two ways and shouldn't be taken lightly. If you decide to leave out that condition, you want to make sure your home is show room condition, ready for the market, and priced very well. This is not the time to "start high" with price and reduce it if you don't see any offers.
2. Write your offer conditional upon the sale of your current home. This is the more common of the two methods. This means that yes you've agreed to buy that new home, as long as you can sell your current home in a specific period of time. Generally 1-3 months. This is the safer way to do things because it doesn't leave you owning two homes if your current home doesn't sell in time.
What you'll likely see the listing agent/seller add to the offer is a condition benefiting the seller called a "time clause". This means the seller can still advertise their home for sale and if another offer comes in that they are willing to accept, they can accept it as a back up to your offer. They will then envoke the time clause which gives you a specific amount of time, usually 48 hours, to decide if you want to back out of the deal and get your deposit back, or move forward with the deal and remove that condition.
These are the two most common ways to structure the offer and your comfort level and risk tolerance will determine which is best for you. Option 2 is the safer method but you can find yourself losing a home you think you've already bought if your home isn't able to sell in time.
This is also not the time to try pricing your home high and then reducing after. You want to make sure your home looks and shows as best as possible and is priced very well to ensure it doesn't take too loing to sell.
This happens every day as people upgrade their home. Knowing the best route to take will give you the confidence you need to make the correct decision.
If you've thought about upgrading your home, give me a call/email and I can explain this in more detail. Everyones situation is different and you need to be speaking to a professional before writing an offer.
Here to help!