What’s The Best Strategy Selling First Then Buying?

 

Stress Buying First or Selling First

Stress Buying First or Selling First

Whether you are downsizing or upsizing be prepared for a stressful experience. You’ve made the decision to move, but now comes the critical one…Do you sell first or buy first?  In a previous blog I addressed the buying first then selling scenario and the following link will get your there.  What’s The Best Strategy Buying First Then Selling.

There is no one correct strategy and it ultimately depends on you and how you can answer the following questions:

  • Is your present home attractive to buyers actively looking?
  • What is the present market condition (Seller/Buyer/Balance market)?
  • Do you see potential homes for sale which you are considering buying?
  • Are you more comfortable with knowing exactly how much cash you have in hand from the firm sale of your home?
  • Is Your home ready to be staged and is showing its best?

The decision is made and it’s selling first.   I personally like this strategy as selling first you have given yourself the key tactical advantage of time. Here are some reasons of what selling first can be the more winning strategy:

  1. Potential Higher Selling Price – You get to dictate the best time to sell.  Timing the sale of your home to attract the greatest number of active buyers  you have created a greater opportunity to secure your price.  Nothing says desperation more than when I see someone who has bought first and the listing says “motivated seller” or “price just reduced”.  Flags like that will only attract the sharks looking for a deal.
  2. You Have a Better Negotiating Position – With any offer you the valuable commodity of time.  You can work with the offer and decline if it does not meet your price or conditions.   You will always leave the door open for all offers, however you get to stay in the comfort of your home and continue on with living.
  3. Flexible Closing Date – So you and a buyer have come to a deal, but before all the handshakes consider inserting one additional clause in sales agreement.  Even if you have managed to get a 90 day closing date, by putting in a clause which allows the seller to delay closing for an additional 30 go 45 days you have given yourself a better window to shop for a new home.   I always find it is better ask for this during negotiations and you have it if you need it.
  4. Renting versus Buying  –  If you are unable to secure your dream home who says you have to buy.  By renting you can continue looking without the stress of immediately buying whatever is presently on the market.

One thing which should be mentioned is definitely talk with your mortgage provider.  Yes, you want the pre-approval and terms of any new mortgage, but also determine what fees you will incur if you need to break your mortgage.  You’ll  be surprised of how high they might be.

Now you have not eliminated your stress, but have only deferred it to your buying side.