BUY OR SELL FIRST?
professional advice | market analysis
If you currently own a home and are considering looking for a new one, you may be wondering “Do I Buy or Sell First?”. Do you wait to find the perfect home before listing your home For Sale? or Do you sell your home first and then look for a new one?
Thankfully you have options and can choose the strategy that suits you best. Every situation is different and all options need to be explored. Any questions about buying and selling should be directed to a Real Estate Professional.
buying, selling or investing .... you have options
SELL FIRST
benefits:
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After your house sells you know exactly how much money you have to work with
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Easier to narrow your house search right from the beginning
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Gives you the ability to make immediate / firm offers on any houses you may want to purchase
Sellers tend to take unconditional offers more serious, giving you more consideration as they realize you’re probably looking at other homes and will move on to the next property if the initial offer is rejected. This is your opportunity to really explore all housing options and find the best fit for you and your family and through proper negotiations you may be able to find a great deal too.
potential risks:
If you don’t find the right property before the closing date of your current home, you may be in need of temporary housing until you find what you are looking for. Before making a decision to sell first you need to review what alternate or temporary options are available to you. How long are the temporary options available? Can you and your family handle living in transition for an undetermined amount of time?
BUY FIRST
benefits:
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Your dream home is For Sale now and waiting may not be an option
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An unbelievable price may be too much to pass up
If buying first means you don’t miss out on the Real Estate opportunity of a lifetime, it may be your best option.
potential risks:
Be cautious, if you purchase another property and are unable to sell your current home you could end up having to finance both properties until your home is sold. Having an appraisal or market evaluation of your home prior to selling can help you get an idea of market value but your final selling price is unknown. If you have a tight budget this could be a gamble.
Before making this decision make sure you are familiar with all financial concerns or potential outcomes. Consider how much financial stress this could put on you and your family. How are you going to be able to deal with this stress? If you needed to sell quickly can you afford to take a price reduction? How much of a price reduction can you actually afford? You need to be able to make a fully informed decision and may need the advice of a Financial Advisor and or a Mortgage Professional.
CONDITIONAL OFFER
what is a conditional offer?
Typically added to an offer of purchase and the purchase is made conditional on the sale of your home within a specific time frame. This condition usually contains a clause that will allow the Seller to continue to market their home for sale and they remain open to other offers. If the Seller receives another satisfactory offer you will then have the option to firm up your offer by removing the condition to sell your home or you can back out of the offer and the home will be sold to the new Buyer.
This option can be a compromise for people who are not sure whether to Buy first or Sell first. Either way nothing is guaranteed for the Buyer or the Seller with a conditional offer, and it can be very stressful for a longer periods of time.
Executed correctly by a Professional Realtor this type of offer can be sucessful for both parties involved. Don't make any decisions without fully understanding the risks.