Sell or Buy First?
This is a tough decision you have to make. The right answer will depend on your personal situation, as well as the condition of the local housing market.
If you put your home on the market first, you may have to scramble to find another one before settlement. This can put a lot of weight on your shoulders, especially when you are not having your pockets stuffed with an endless amount of cash. Furthermore, there is another risk: If you are in a hurry you could end up buying a home that does not meet all your requirements. Buying a home while being in a hurry is no good idea at all.
What are my options?
If you cannot find another home within the time frame that you have available, you may need to move twice. Temporarily staying with relatives or in a hotel will be a solution, but not necessarily a thrilling idea.
On the other hand, if you make an offer to buy first, you may be tempted to sell your existing home quickly, maybe too quickly. This often results in a lower price. Not everybody can stomach the financial responsibility for two homes and gets cold feet. You also have no guarantee that you can sell your home fast. That idea can get your feet even colder.
The advantage of buying first is you can shop carefully for the right home and feel comfortable with your decision before putting the existing home on the market. Although everybody likes that idea, it doesn't always work that way. If you do not have a lot of assets you may have to apply for a equity line in order to have cash money or you need financing for the new home. Are you comfortable with the idea that you have to carry two mortgages at once?
Talk with us if you're not quiet sure what to do
Discuss the pros and cons of each decision, and whether certain contingencies written into the contract can ease some of the pressures.
However, keep in mind that contingencies will make an offer week or not appealing at all to a seller. "Contingent upon selling the home up north" (without a written offer in place) is usually not what a seller wants to see or accept. Such a contingency will not get you any further. Only when you have an offer in place, it becomes a different story.
Now there is something the potential seller of your new home can work with. Under certain circumstances he is probably willing to swallow the bitter pill. But only if there is a realistic chance of getting the sale trough will he accept the contingency. If your home-buyer does not even have a bank approval for the sale of your house he will most likely pass.
And don't try to lowball! With such a contingency in place you are not really in the driver's seat.
Drop us a Line for more information or to schedule a private home tour. You may also call us at 941-244-8341.