Buying A House Guide entry number one – Sell Your Home First - is actually for current home owners. Often I am asked, “Which do I do – sell my home first, then buy our next home or find our dream home, then sell our existing property?”
Time and experience has shown that it is better to sell your current residence, then purchase your next home rather than the buy first, sell second method.
But this makes a lot of move up home owners uneasy. They fear they will be forced into a double move – or worse – will find themselves making payments on two homes at the same time!
Buying a House Guide – Why You Should Sell Your Home First!
Just remember – when you sell and/or buy a home, you want to be in the best negotiating position possible in both transactions.
By placing your current home on the market first, you have time to make necessary repairs and touch ups that allow your home to be seen at its best. Preparing a home for sale is like getting ready for a a lavish dinner party. You are getting your home ready for its grand entrance!
To market a home properly requires time for its marketing plan to work. Ususally, this involves Open Houses, internet marketing and advertising, involving the Broker community, and placing information about the home everywhere new buyers are looking for new homes. You want to lay the groundwork so that the largest number of people learn about your home in the shortest period of time, generating a buzz. This takes thoughtful preparation.
When the excited buyer finds your home, you are free to negotiate the best terms for you and your situation. These may include alowing time for you to find a replacement home before you must vacate your current home.
Then, as you enter ito a contract on your next home, you present yourself as a buyer who has already sold but are awaiting the close of escrow on their current home. You are a much less risky buyer to the owners of your dream home and can often get more favorable terms in negotiating the contract.
To do buy first, sell second, you would have to make an offer that is contingent upon the sale of your current home. This means the seller of your dream homes has to worry whether you can sell your home of not, and many will not even consider taking on this additional risk. They would rather have a buyer who can perform now!
If they do accept your contingent offer, prepare to pay top dollar. Your negotiating power is greatly reduced and you have already used up a lot of it just getting this less than desirable contingent offer accepted in the first place.
In addition, the seller will want your home on the market NOW! They are not nearly as concerned with how much you will get as how soon you will get it. You must scurry around, getting your home ready for the market no mater what it looks like. It causes you to be forced into a situation where you must generate a flurry of activity, and that usually means listing at a lower price.
In this case, you have traded your desire to buy your perfect next home for most of your negotiating power on both transactions!
This is why – in our Buying a House Guide – we have made selling your home first number one on our list!
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