I’m sharing a quick update about the unique market we’re in right now.Search All Homes on the MLS Here Receive a FREE Home Value ReportToday I want to update you on a unique situation
Selling Your Current Home and Buying a New One
Dated: March 3 2020
If you need to buy and sell, I recommend putting your current home on the market first. Here’s why.
Most home sellers want to find the right home to move into next before actually moving, but what’s the correct order to this sequence? Do you buy first and then sell or sell first and then buy?
That’s a tough question, and unfortunately, most people have a hard time buying a new home because they have to sell their current home first. If you find a home you want to buy but haven’t sold your current home, there are a lot of factors to keep in mind. There is no right or wrong way to proceed; it just depends on what you’re looking for.
I always make sure my clients find what they’re looking for ahead of time, because there are usually enough properties to fit a person’s needs. Let’s be honest: Unless you’re buying new construction, no home will be 100% perfect, and you’ll make it your home anyway over the years, so remember to set your expectations accordingly.
That being said, I always recommend putting your current home on the market first. This way, you’re in a better position to buy the next home. As a seller, if you have a buyer who needs to sell their home before buying yours, that can get complicated—especially if they don’t even have their home on the market yet. Essentially, you risk them not being able to sell their home. You have to wait around for them to sell while not being available to other buyers during what could be a prime time on the market.
Put yourself in the buyer’s shoes. If you make an offer on a property without having sold yours first, that seller is taking a big risk, and to accept your offer, they’d likely want more money. Meanwhile, you urgently need to get your home sold because you’re perpetually in danger of getting tossed aside in favor of another buyer who swoops in with a non-contingent offer. This means you’re more likely to sell your home for much less. In short, you may lose a small fortune before all is said and done.
Granted, if you can line up everything correctly in this scenario and make it work, that’s great. If you can pay for your next home in advance, you can certainly buy first, but do you really want to finance two homes at once?
If you sell first, you can secure your mortgage to purchase your next home. I know lenders who can get this done in as little as two weeks. The average timeline to process a loan is 45 days, so you’d have a whole month to find a home. Not every seller will be able to close in two weeks, but there are a lot of vacant properties out there, and you’d be a strong buyer in the eyes of those homeowners.
If you’d like to talk more about the best way for you to move into your next home or have any other real estate questions, don’t hesitate to reach out to me. I’d love to speak with you.
Whether you are looking for a new home, have a property to sell or have a property to rent, The Brian Ernst Team at eXp Realty can help you achieve all of your real estate goals by bringing their expe....