Sell or Buy first
The question from which no one can run. Each outcome has its pros and cons.
Selling first:
First off, are you emotionally prepared to sell? Bye bye childhood home or first baby’s room and other fond memories? Homes can sell swiftly. On occasion, I have clients who enter a state of shock when their beloved home is sold within 24 hours. There could be a motivated buyer out there who wants YOUR home, so be ready.
If money is tight, selling first will give you peace of mind.
If selling price is extremely important for you for budgeting your next purchase, it would be a good idea to sell first. In a volatile market it is tricky to know exactly what the final selling price will be. The market can change from week to week.
If you don’t find your dream house before closing date, do you have a place to stay? Maybe a relative’s house? You can possibly store your stuff in someone’s garage, or rent a space or even one of those sea cans that are delivered, taken away then magically delivered to your new address on the date of your choice.
Planning a holiday? Might be a good time to take one to celebrate your purchase, if the closing dates don’t match up.
Does your house have no lot to speak of, 1 bathroom, on a busy highway and you really love to foster cats? Sell first.
Buying first:
Talk to your bank. Bridge financing might be less than what you think.
What is the state of your home? Take a deep breath and ask your agent for a non-sugar -coated opinion on the state of your home and how quickly it will sell. If it is ‘show-room’ beautiful and appeals to a broad spectrum of folks, at a mid price point, usually these types of home sell quickly in any market. If it is “beautiful to you”, then it might take a little while longer.
Ask your agent about the 48 hour escape clause. Depending on the state of the market you could put in an offer conditional on the sale of your home. The 48 hour escape clause gives you, the buyer, 48 hours to decide to remove your condition if the seller receives another acceptable offer. By this point, you may decide that given market conditions, you feel your house WILL sell and you may not need it, or you can walk away from your purchase should you decide to stick to the original plan. If it is a sellers market, usually a 48 hour escape clause won’t fly, but depending on the situation it just might.
Are you looking for a house with 3 bedrooms, 7.5 bathrooms, with tons of ‘old world charm’, but under one year old, room for a horse, overlooking a waterfall, within walking distance to a private school? Buy first.
Whether buying or selling:
How is your tolerance for risk? This is a bit of an unfair question as there is a risk inherent with both scenarios. Be positive! Also be informed, and know what your options are. Knowledge is power and knowing the possibilities will give you more peace of mind throughout the process.
Ask me. I have many stories, experiences and knowledge that I am more than happy to impart to you.