The stress of Selling before Buying and how to mitigate it
As the real estate market continues to shift in real time, many sellers will find themselves in the position of being ready to move - but not knowing for sure where they’d like to move to. Say you’ve outgrown your house and you know you need to upsize (there’s a baby on the way, a dependent will be moving in, you’re at risk of murdering your partner if you have to share one more second with them in your tiny kitchen), but you don’t have a particular house in mind. Or, as the market continues to change, you want to know exactly how much you have available to you from the sale of your place. Selling without buying first comes with benefits, as well as risks.
There are two primary concerns for sellers listing before they know where they’re going - selling your place and not finding something suitable to move into, and the potential of the closing dates not lining up and having to scramble for a rental or the unaccounted for costs of bridge financing. Here are two clauses we’ve used to address these fears:
Advancement/Postponement of Closing Date
Notwithstanding the completion date set out in this Offer, the Buyer may advance or postpone the completion date of the transaction by not more than 30 days, by giving written notice of the amended completion date to the Seller or the Seller's Solicitor at least 30 days in advance of the earlier of the completion date set out herein and the amended completion date.
This is a clause for the advancement/postponement of the closing date in either direction by up to 30 days. If you have buyers and sellers that are flexible, this clause helps keep the closing date flexible for up to 30 days in either direction of the closing date set out in the agreement, provided you give adequate notice.
Seller Accommodation
This Offer is conditional upon the Seller finding accommodation satisfactory to the Seller in the Seller's sole and absolute discretion. Unless the Seller gives notice in writing delivered to the Buyer personally or in accordance with any other provisions for the delivery of notice in this Agreement of Purchase and Sale or any Schedule thereto not later than {{$Time}} on the {{$Date}}, that this condition is fulfilled, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. This condition is included for the benefit of the Seller and may be waived at the Seller's sole option by notice in writing to the Buyer as aforesaid within the time period stated herein.
This is a seller accommodation clause. If you were to sell your house prior to finding something suitable to move into, you can propose a seller accommodation clause stating that the sale of your home is conditional upon you finding something suitable for purchase. Some buyers will be ok with including this clause, and some will, understandably, not want to tie up their home search withyours.
These are two clauses to be familiar with before you list your home for sale, if you don’t have a new home in mind. I always like to take offers as they come, as they will all have their own unique terms (closing dates, price, conditions, etc. For example - an offer with a longer closing date can give adequate time to find something you like and give you the opportunity to line up your buy-end with your sell-end.) You may end up not needing either. But it is good to know what potential ways you can position yourself to achieve your home goals.