Should You Buy a Home First or Sell Your Old One First?
by Stuart Neal
on Monday, February 17th, 2020 at 11:35am.
Many people start their home buying process backwards. That is, they start looking at homes they may buy BEFORE they have sold their existing home. This is a BIG MISTAKE unless you fall into one of the following categories:
You can afford to own both homes for a period of time.
You are looking for a home that is so unusual or overpriced, that the seller will be grateful for your interest and be willing to work with you. In exchange for a full price, they will wait until you sell your existing home, before you follow through and buy their home.
I’m going to share some tough love with you!
In most circumstances you would be well advised to sell your home first and here’s why:
1. You Have Nothing to Offer a Seller
Sellers of the most attractive opportunities i.e. ‘cream puff’ homes or discounted homes will not be interested in contracting with you on a ‘subject to sale of existing home basis’. They don’t have to. There is ALWAYS a better buyer who is ready to close quickly and without complications.
2. You Have No Leverage
Are you hoping to find your dream home and get a discount off the price? In the unlikely event a seller is willing to entertain your offer, you won’t get a contract with a big discount AND have it subject to the sale of your home. Some sellers may be willing to work with you provided you agree to pay MORE than their asking price.
3. You Will Be Stressed
How will you feel if you keep finding homes you love and someone else buys them before you are ready to submit an offer?
4. You Have No Certainty
You have no real idea where you stand financially or timewise until your home is sold. Get your home under a firm contract BEFORE you start to look. If you do it this way, you have 2 things going for you. First, you know how much money you can spend. Second, you know when you can move into your new home. Sellers will appreciate this and will take your offer far more seriously. They may even offer you a discount!
Want more information about our full service FLAT FEE home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit our home sellers page www.FlatFeeRealtyAdvisors.ca