When pondering moving house, one of the first questions you might have is whether it’s better to sell your property or buy first. This can be a tricky question that depends on each seller’s personal situation. It can be a good idea to turn to an expert for assistance when you are trying to make this decision. Yet also bear in mind that because a real estate agent may be most focused on selling a property, they could answer the question with their own gain in mind. This answer would most likely be to buy first, because this would force you to sell your old home quickly no matter what type of offers are on the table.
On the other hand, if you decide to sell your home first before buying a new one, you may end up changing your mind which would lead to a loss of commission for the agent. It’s important to work with an ethical agent who you can trust. Register now at LocalAgentFinder to start comparing agents to find the right fit. A good agent will be able to give you impartial advice to best suit your circumstances.
When is it Best to Buy First?
There are many different factors to consider when it comes to selling your home. This includes the current state of the real estate market, along with your own financial goals. For example, in a buyers’ market you would stand a better chance of getting a bargain on a new property. This could be a good time to buy first. Another example of a time when it would be best to buy first would be when you are in the process of moving because of a job transfer. If you have a set date by which you need to move, you may not have the luxury of waiting for your old house to sell before you have to buy a more conveniently located new one.
Selling before Buying
In most cases it’s more advantageous to the seller to sell the house before buying, however. One of the first reasons to sell first is because there will be less pressure on you to make a sale. If you have already signed a contract on a new house, by contrast, you’ll need to sell your house within a certain timeframe. This could lead to you accepting an offer that is below your asking price, because you don’t have the time to wait for more offers to roll in or the luxury of negotiation.
Buyers and their agents can be experts at sniffing out desperation in sellers, and will use this to their advantage. It’s in the buyer’s best interest to achieve the lowest price possible, and to do this they will be on the hunt for signs of weakness. If you are selling your house without already being locked into a new contract, you can afford to wait longer for the right offer to come along. This gives you the upper hand in negotiation. If buyers can see that you are waiting for the right offer to come along rather than simply wishing to settle for a fast sale, they will be more likely to take you seriously and make a higher offer.
Selling your home before buying allows you to place a clause in your contract stating that selling the home is contingent upon the successful purchase of a new house. This puts you in top position to achieve your goals. If you wish to put a clause of this nature in your contract, it’s a good idea to speak to a real estate agent about wording. You can compare agents in your area using the no-obligation dashboard at LocalAgentFinder. Although many agents would strike this from a contract, there’s a chance that you could luck out. Another option would be to ask for a contingency period which buys you some extra time. With a contingency period, you can always cancel the contract if you’re unable to find and purchase a new home in the agreed upon time period. This type of contract will be more likely to be accepted by your buyer’s agent.
Renting after Selling
If you aren’t able to find a house in time, you might have to rent after you have sold your home. You may be able to work out a deal with the buyer. If your buyer doesn’t need to move in immediately, for example, they might be willing to rent the house to you until you find a permanent residence. However, if they need to move in immediately you will need to find some form of short-term housing in the meantime. This is less than preferable, because it will require moving your belongings twice which is stressful and costly.
Despite the chance of this worst-case scenario, it is still usually better to try and sell first before you buy. This gives you the time you need to think all offers through carefully and take your time preparing your home for sale. Be sure to weigh all of your options before deciding on a strategy, because every seller’s situation is different.
It’s a good idea to speak to a real estate agent about what all of your options are. Sellers have been using LocalAgentFinder since 2007 to find qualified real estate agents. Find out how it works and get in touch with an agent who will be willing to represent your needs, no matter when you decide to sell.