วันศุกร์ที่ 17 พฤศจิกายน พ.ศ. 2560

Buying Your Next Home: Should You Sell Before Buying?

You have no doubt heard the saying about the chicken and the egg and which came first. Many people have the same thoughts about Real Estate. I've met countless clients that have been searching there local MLS® and visiting open houses ฝากขายคอนโด for months, but they haven't even started the home SELLING process yet.

Many people start by looking for their next home. Now, while there is nothing wrong with taking a peek at a few homes to make sure you really do want to move, you may be throwing away some cash by doing so.

You may be thinking, "how can I possibly be throwing money away simply by looking for a home first?" Consider this very common scenario:

You start looking for your "dream home" before deciding to list your home for sale. You scour the MLS®, check out some open houses, probably arrange private showings with a few of the listing Realtors®, hopefully for your sake you enlist the services of a Realtor® along the way (there is more than one article on this site detailing why this is in your best interest). Now, imagine you find that perfect home, and would like to write an offer. Now what?

You can write the offer "subject to sale" which means if you don't sell your house within a reasonable amount of time, you can back out of the purchase. This condition will also have a time clause, where if the seller get's another acceptable offer, they will give you a certain amount of time (usually 24-48 hours) to remove your conditions. As you can probably imagine, any offer that is subject to the sale of another property, is not an incredibly strong one, and leaves you much less leverage when negotiations start.

So, you've likely left a bit of cash on the table in the purchase of your new home. Now let's talk about selling your current one. You have an accepted offer on your "dream home". Now you have to rush to get your current one on the market. This will take at least a day or two. You will likely have to price it a little lower to make sure you get an offer quickly. Hopefully, with your aggressive pricing, you will get that quick offer. Let's say the offer is $10,000 below your asking price. While normally this would be a good starting point for negotiations, you now have to ask yourself, am I willing to lose out on my 'dream home" by aggressively negotiating with the buyer? You can try, but if the buyer decides to walk away, you are that much closer to losing out on that new home.

So in summary, you likely left some money on the table at all three points of the transactions: purchasing the new home, listing lower to get a quick offer, and accepting a lower price in order to solidify the purchase of your new home.

To make a fairly long story really short... sell your current house first! You'll be glad you did.


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