Sell before you buy

Sell First Or Buy First.

"The main thing to consider is market conditions". Is it a buyers market or a sellers market. See The Affect Of Market Conditions.

but consider the following.

If you sell first you know exactly how much money you have and it establishes your price range to go shopping, this narrows your search to other matters.

Also when it comes time to negotiate on the buy side because your know exactly where you are financially you are not left wondering what you'll actually get for your present home in the middle of negotiations.

The Closing date of both properties is easier to have coincide on the same day..

You may have to move twice if there is a gap in the closing date. (If your present property is sold and the closing date is earlier than that of your new home.)

On the flip side if you don't sell first and you do purchase a new property and the closing date of the new property is occurring before you are able to complete the sale of your present home, You will be faced with arranging bridge financing, essentially you'll have to carry two mortgages for that period of time. More info on bridge financing.
- (this may be for only a week or a month or two at the most and if you can afford it, it makes for a very calm and casual move. In fact many of my clients when we talk about bridge financing have opted to purposely have a 7-10 day over lap)

Selling First Pros & Cons

Immediately after selling first you will straight away be able to make firm offers on that special home you found that you really have to have.

Selling first Improves the power of your offer on the buy side as sellers will give more consideration to buyers that bring offers that are not conditional on the buyer selling their home.

Generally in order to convince a seller to accept an offer that is contingent on the sale of the purchasers property, (SPP) the buyer has to seduce a seller with a premium price for their property and a rather high deposit.

If you buy first and its taking a longer time to sell your home than you thought and the closing date on your new place is fast approaching you will be vulnerable to accepting low offers on your present home.

There are some that feel that if a seller is open to accept a SPP offers they may be having issues selling their property. It could have been on the market for a long time without offers or has had offers and they have fallen thought because of deficiencies in the property.

Sellers who accept offers on a SPP condition will almost always make sure that the clause in the contract says that: (1.) "The seller can continue to market their property, and (2.) If they receive an offer that is acceptable to them they have the right to give you 48 hrs to make your offer firm or loose the property. WHAT WOULD DO?

However If you do sell first and you do not find a satisfactory new home in time for that closing you may just be tempted to settle for something that isn’t quite what you want.

If you intend to buy first you should always have your home ready to sell, Repairs done and home decluttered and prepared to list your home within 48 hours of having an acceptable offer on a new place.

And above all is the "Stress and Uncertainty." Generally if its a buyers market sell first. If its a sellers market there is more room to look at possibly buying first.