What’s The Best Strategy Buying First Then Selling?

The Stress of Buying First Then Selling

The Stress of Buying First Then Selling

We all have our own comfort levels in managing stress.   Some are certainly the more cautious types, while the other side of the spectrum we have those who are cool under pressure and  relish living on the edge.  Either way making the decision to buy or sell first is one where you want to definitely be within your acceptable stress zone.    The process of buying or selling your home will be stress on steroids.   Be ready for the challenge.

 Buying First Then Selling

So buying first is your first priority.  Your reasoning is that once you find the perfect house you will aggressively go after it.  However before you start this journey there are a couple of things you want to do first:

  1. Talk to your mortgage provider to get an assessment of your financial health.  How much would they pre-approve you for if you’re looking to upscale to a more expensive property and what are the terms they will provide.  If you are downsizing or looking to break your mortgage, definitely inquire about what the penalty will be…it will be significant factor.
  2. Get your house ready to sell.  This means budgeting between 2 to 4 percent of your present home’s value for updating and repairs.  Doing this now will minimize your stress level as it will avoid taking on these jobs while house hunting.
  3. Get yourself a real estate agent you trust. The first thing you want from them is to provide an accurate assessment of your present home’s true market value.  Knowing the actual value of your property will help you determine your equity position and establish the price range of any new home you are considering buying.
  4. In a hot real estate market you will most likely not be able to put in a conditional provision of selling your home to a home purchase.  Get the longest close you can and put in an additional clause of having the buyer option of extending the close for additional 30 days.   You may not use it, but it’s nice to have if you need it.
  5. Get your home up on the market as quick as you can.   Once again have your realtor provide you with an updated neighbourhood market report outlining what has sold, what is presently for sale, days on market homes are selling  and what are the local housing market conditions.

If you are buying first you should have an established marketing plan and be confident that your home will attract lots of qualified, targeted buyers. With buying first you have certainly taken the pressure off of locating the right home for you; however that stress has now shifted to the selling of your present home.