is your dilemma: Should you wait for the right home to come on the market
before putting your current home up for sale or should you sell first and then
go out and find what you want?
While there is no simple answer to this question, you will probably come
to a definite decision based on your personal comfort levels with regard to the
You know exactly how much money you have from the sale of your first home
and can comfortably choose your next home's price range and negotiate accordingly.
With cash in hand you can immediately make firm offers on any property that
meets your needs. If a property pops up that is perfect or extremely well priced
you can be the first in the door with an offer.
You have more negotiating power. When Sellers turn down or counter an offer
that is conditional upon the sale of a home, they usually believe that the Buyer
will come back with a more serious offer if and when the Buyers' home has finally
sold. Sellers give much more consideration to unconditional offers since they
usually realize the Buyer does have other options and may move on and pursue
a different property if their final offer is rejected.
If more than one property interests you, you can shop around, negotiate,
and finally settle on the best deal.
If the right home is not currently on the market when you finally sell,
and nothing comes up before your closing date, you may have to find alternative
accommodation until something appropriate comes along.
you should ask yourself
Do you have reasonable options available if your closing dates do not line
up and you cannot move into your new home the same day you move out of your current
How would you and your family react to the stress of having to rent for an
unknown period of time?
If you are only interested in moving if a very specific property comes up,
buying first ensures you do not miss out on the perfect opportunity.
If a unique or underpriced property comes on the market and you do not think
it will last long, snapping up the deal ensures someone else does not buy it
out from under you.
If your current home does not sell quickly enough you may end up having to
finance both homes and carry the extra debt until you do sell.
You do not know what the final selling price of your current home will be.
If your budget is tight, this could affect your financial decisions. While you
can get appraisals and market evaluations of your current home's value, nothing
is for sure until you actually get an offer.
you should ask yourself
How would you react to the stress of owning two homes at once?
Would you have the financial reserves to do this?
How would you feel if you were eventually forced to sell your current home
at a "fire sale" price?
A third option involves making your offer to purchase conditional upon your
being able to sell your current home within a specified time period. Conditional
offers usually include a clause that allows the Seller to continue to market
his or her property while you try to sell your home. If the Seller receives another
bona fide offer, they can accept it and ask you either to remove your condition
and firm up or to step aside. While conditional offers do not provide all of
the advantages of the first two options, they do offer a reasonable compromise
for those uncomfortable with the drawbacks associated with either selling or
You do not have to sell your current home until you have found and negotiated
an acceptable price on your next home.
You have less negotiating power. Sellers sometimes turn down or counter an
offer that is conditional upon the sale of a home. There is a general impression
that Sellers give less consideration to conditional offers than they do to firm
ones. Some Sellers feel that the Buyer will come back with a more serious offer
if and when their current home has finally sold. You may end up having to pay
a bit more for the house in order to get your conditional offer accepted and
be first in line.
Another purchaser may make an offer and bump your offer before you have sold
your current home, putting you back at square one.
You cannot withdraw your conditional offer until the time set out in the
condition has passed. This could be frustrating if a better deal comes along
and you wish to pursue it.
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Real Estate Community
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or selling a home. Click
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"To friend Overbeck and wife. Although you have so far demonstrated little faith in my ability to pay, I yet hope to demonstrate that I am somebody who pays his debts--for example, to you. I am just having all anti-Semites shot. Signed, Dionysus" -- Friedrich Wilhelm Nietzsche