Sell or Buy First?
This is probably the second most popular question I’m asked when speaking to a home owner about selling their home. It comes directly after ‘What is My Home Worth?”
I’ve happily answered the same questions hundreds of times over the past two decades. Now I’ve published my answer. Below is the article in my local magazine for April of 2019. I’ll continue to be asked the questions ‘should I sell or buy first?’ and I’ll continue to answer them… Though, after you ask I’m going to email the answer in the picture form. One, because it’s spring and chicks are adorable. Two, because it saves me time and I won’t forget anything important.
Are you finding yourself in the quandary? Wondering which comes first, selling your current home or finding the replacement home? You are not alone!
Just as scientists are sure the egg came first; I’m sure that you need to GET YOUR HOME SOLD first. If you need to close escrow on your current home in order to secure financing on your next home, one of the biggest hurdles right now is to get it sold. Writing an offer on a replacement home contingent upon the sale of your current home puts you in a compromised position for negotiations and puts you at the bottom of the pile when competing with other buyers.
Below are some options to consider:
1. Work out a longer escrow and/or rent the property back from the buyers of your property while you continue to shop for your next home
2. Temporary housing options; preferably furnished
3. Consider renting for a short period of time (6 months -1 year)
Many sellers are hesitant to commit to selling their home if they have not found their next property, particularly as we have seen record low inventory in these past several years. However, it’s difficult to buy unless your home is in escrow. Some sellers will offer to sell their home contingent upon securing that replacement housing. While this worked a couple of years ago as buyers were desperate to find a home, it is not as agreeable today as it leaves a buyer in limbo as they wait for the seller to find that next property with no guarantee.
Although it may be uncomfortable to consider not knowing where you will be going, you will ultimately reap the best results by being pragmatic and selling first, then buying. I have helped many of my clients successfully move from one house to the other with no interim housing by negotiating creatively on their behalf and being proactive in exposing them to the market place so that all their cards fell in to place at the right time.
If you have been considering a move but have not been quite sure how to accomplish the logistics, give me a call at 619-993-3734! I can walk you through a plan customized to your needs and help you achieve your goals and so you’ll know which you should to ‘sell or buy first?’