This is a transcript of the video.
Well, good morning. Good Friday morning. It’s Walter Monteiro here from Remax center in Cambridge, Kitchener, Waterloo.
A big controversial question these days is whether should you buy first or sell first?
Well, as you know, the market’s been pretty interesting to say the least. It really changed from February where over the last probably 18 months, most sellers were buying first because if they sold their home without having somewhere to go.
They could make themselves homeless. They could actually get shut out of the marketplace.
So most people were buying and then putting their home on the market afterwards and it worked fine.
Okay, Now the tables have turned here. Properties are hanging on the market. So you’re taking a chance in doing that.
So my advice to most people is to sell first and with you sell first, you’re going to have to do a couple of things. If you are very nervous about where you’re going to go, then you can put your clause into your agreement that allows you to find a property.
First, we call that the VPP clause, conditional on the vendor purchasing property.
Most of the time you can get that for a few days, much longer than that.
It’s not really likely to get accepted. You’re tying up the hands of a buyer and the buyer is basically not at Liberty to go and find something else because you’re out busy looking for something yourself. Hard costs to get accepted, but it’s there and if you can use it, why not?
Your other alternative is to put in a clause into the agreement that allows you to shorten or lengthen your closing date. So you, you accept an agreement.
You put in a set closing date, and then you have a certain amount of time where you can change the closing date. So if you need longer, you exercise that, right? If you need shorter, you exercise that right?
The third alternative, sorry, I’m out of breath here. Cuz I’m walking so fast is conditional on sale of property.
So you make an offer condition on your selling. If you can get it accepted. Great. But I can tell you this most sellers don’t like that clause because what ends up happening is the activity on their listing really starts to die and it puts them at a disadvantage.
So getting a clause accepted condition on sale of property is tough to get accepted. And if I was a seller, I wouldn’t take one, put a dime of the phone or get outta the booth.
That’s what I would do now for those of you that have the ability and or the cash, you can still go cash, but make sure that you do have your ducks in a row. Do you have the money to close and will it co will it cause complications? There’s always ways of closing a deal. Just be careful. It could be expensive. Have a great day folks.