Should you sell your current home before
you buy another one or should you find a new
house first, then sell your current home?
This is a common question and a source of confusion
for many current homeowners who are in the market
for a new house. Let’s take a look at both approaches
and see which one works best.
|
|
| Many people will find
a house they like, sign a contract to buy the house, then put their
current home on the market. Naturally, the contract contains a contingency
that allows the buyer to sell their current home before closing on their
new house. This is a common strategy, but it has a downside. |
|
| Sellers who are
reluctant to take their houses off of the market sometimes reject
contracts from buyers who make the purchase of the new house contingent
upon the sale of their current house. Or, the seller may accept the
contract but continue to show the property to other buyers. In these
instances, you run the risk of having the house sold out from under you if
you haven’t yet sold your current house. In other cases, the seller may
reject your contract if another buyer submits a contract that does not
contain a home sale contingency. |
|
| The other approach is
to put your current house up for sale before you buy another one. I
believe this approach offers far more advantages. First, you’ll have a
good idea of how much money you’ll get when you sell your house, which
will help you decide how much you can spend on another house. Once you
sell your house you can negotiate as a cash buyer on your new house, which
gives you tremendous leverage. It can be a tie-breaker in your favor if
other buyers submit contracts that contain home sale contingencies.
Without a doubt, this is the better way to buy another house. Yet many
buyers a reluctant to follow this strategy. |
|
| Why are they reluctant? Most likely, it’s because they’re afraid
they’ll be homeless if they sell their current home and haven’t yet bought
another house. A good real estate agent won’t let this happen. You can put
a clause in the contract for your current house that will give you a set
amount of time to accept the contract, which will give you time to find
another house. If you can’t find another home is this time, you can
declare the contract null and void, which will prevent you from being
homeless. |
|
| No matter what strategy you decide to follow when looking for a new
house, you’ll need professional representation. I would welcome the
opportunity to meet with you to explore ways that I could help you as you
look for another home. I look forward to your email or phone
call. |
|
