Conditional Offers: How Saving $450 Could Make you HOMELESS!
Often times people put an offer on a home conditional on selling their home. Happens all the time. So lets say your selling home A and buying home B... You're going to buy Home B conditional on you selling Home A. Now Home A is also conditional on an inspection.
A lot of times to try and save you $450 a Realtor will recommend that you put in the offer, "inspection to be completed 5 days after the sale of purchasers home"... in this case Home B. It sounds all well and good, but what happens if you sell your Home A, and it is 1 month left until you close on your new Home B. You now do the inspection and find out MAJOR WORK NEEDS TO BE DONE. You and the vendor do not agree on the work, and the sale of your new home falls through. Now you are selling your home in 1 month, and you have no house to buy.
So lots to consider when making a conditional offer. Sometimes I recommend doing the 5 days after closing, as it works more with the timelines. It is very dependent on the two homes involved, the level of anticipation of a good/bad inspection, and what your timeline is to sell your home, and buy the new home.
If you have any questions about conditional offers or need the advice of a Realtor make sure you give me an email at ben.schmidt@me.com and thank you very much Fredericton we will be talking to you real soon ;)