When you put your home up for sale, you can expect to get
offers from a variety of buyers. There
are essentially three types of buyers:
those who intend to pay with cash outright; those who will be paying
with a loan (often from a mortgage); and those who need to sell their house
first to get the funds to pay for your home.
While homebuyers who can pay upfront with cash sounds like a
very good deal, they might be able to negotiate a lower price, knowing that you
would prefer to make the sale where there is a high degree of security and
certainty from their offer. Remember you
need to get assurance from their solicitor or accountant before you accept
their word that they indeed do have the cash to purchase your home.
At times, an existing homebuyer will extend a mortgage on an
existing property to get the money needed for a deposit on a new property. This could involve them getting a larger
mortgage on the new home than they actually need. Homebuyers going this route will have two
mortgages for a while, but if they can work with that, it is an option of
getting the funds to purchase your home (their dream home).
Buyers Who Need to Sell Property First
This represents a typical situation; however, you should
proceed with caution because many a deal fails to come to fruition when a
want-to-be homebuyer cannot sell their existing home in a timely manner to
accommodate the purchase of your home.
If you have time to wait, then so much the better for this situation
because it may take some time before you are able to exchange contracts.
Be ready for a variety of offers and options from homebuyers
interested in purchasing your home. A
number of scenarios can work if everything falls into place, according to the
schedule that you need to finalize the purchase of your home.