Should We Buy or Sell First?
We often get asked the question, “should I buy or sell first?” The answer to that question, really depends on your unique circumstances. We could play the “what if” game all day long, but developing a plan before you do anything will protect you from doing the wrong thing. But let’s try some of the common “what if’s.”
What if… We find our dream home, and will lose the deal if we don’t sell ours first?
What if… We can’t negotiate a closing date that works for us, and we don’t have a place to go?
What if… What if we sell our place and cannot find a suitable replacement?
What if… We don’t get the sale price we hoped for from our current property?
So how do you manage? Easy. Do your homework and have a good idea about the neighbourhood and type of home you’re looking for. Do an honest evaluation of your family’s needs and budget. Meet with our entire team to assess what options we have.
If you’ve found a home, before you’ve sold your existing one, use “sale of your existing home” as a condition on your offer. If you don’t sell your house within a fixed period of time, you can choose not to go through with the offer or ask for an extention. This, however, is a difficult condition for many vendors to agree upon and you may find that you have to forgo your price negotiating power.
Purchasing a home before you sell could be a risky strategy if you’re counting on the proceeds from the sale. We can offer a guaranteed home sale option where we agree to buy the house at a certain price if we do’t sell it in the agreed upon time frame. Of course this is commission free.
If you’ve found a purchaser before you’ve found your next home, use a “seller purchase property” condition when you negotiate the agreement. Again, it will only be for a short period time. Even if you have not found your ideal next house by the allotted time period, you may still wish to proceed with the offer. You have control, and can use the time to evaluate your options. As a buyer with a “sold house” you will be in a better position to negotiate price on your new one.
For tips and insight to the selling or buying process please contact us by filling out the form below. Good luck house hunting!