Timing the sale of your home with the purchase of another home can be tricky. A concurrent closing clause can help you to make sure that you aren’t stuck with nowhere to go if your sale closes before your new purchase. There are some things to consider, however, before you decide to add such a clause to your sale.
It May Deter Buyers
People interested in purchasing your home are likely on a timetable of their own. They may need to close before school starts, be moving from out of town and need to move in on a specific date, or be closing on a sale themselves.
A concurrent closing clause may deter some buyers from making an offer on your home because they are concerned you won’t be able to close when it is convenient for them. Leaving this clause out may complicate things for you, but it will also open you to a wider selection of buyers.
Selling First Puts You In a Strong Position
If you sell your home first and then look to buy, you can negotiate from a stronger position. You will have whatever proceeds come from the sale of your house—and already know what those proceeds are—to use as a down payment. If you haven’t sold yet and are counting on making money off the sale, you may find yourself in a difficult position should it sell lower than asking price.
You will also be in a greater position to wait on the right offer if you haven’t already committed to purchasing a new home. Instead of feeling pressured to take a lower offer, you can wait it out and get the price you want.
Concurrent Closing Clauses Provide Peace Of Mind
While there are some reasons not to use a concurrent closing clause, it can also be helpful to you. This sort of clause prevents you from selling your house before you are ready to move, and ensures you won’t have to settle when buying your new house simply because you are in a rush to buy.
A concurrent closing clause can also help to solidify the timeline of your sale or purchase, providing a set schedule for both to close. This is especially helpful if you are already in the process of purchasing a new home when you receive on offer on yours.
Your REALTOR® can assist you with deciding whether a concurrent closing clause is right for you. As with many buying and selling decisions, it is based on a number of personal factors.