Homeowners’ most prominent real estate conundrum is whether they should buy or sell first. Whatever you do is a risk! It’s wise to know the risks upfront, not deceive yourself, and mitigate them.
“The truest way to be deceived is to think oneself more knowing than others.” La Rochefoucauld
If you sell first, you’ll have a closing date that you and the buyer agreed upon. Now, though, you are under the gun to buy a home because that date is looming. You don’t want to be homeless; are you going to rush? You might need more time to find the right home or neighbourhood at the right price and condition.
Be in Control
Like my clients, I like to be in the driver’s seat, so buying a home first is prudent. I know that’s uncomfortable and has some risks; however, this makes sense if you have the proper strategy. There will be no pressure to find a house on a specific date. You can talk to your lender ahead of time and get bridge financing, which is less expensive than you think. You may also be able to pay for the new property in cash, with less risk!
In the old days (7 years ago), you could make an offer with the condition that you sell your home first. Today, less than 2% of transactions have this condition. Regardless of bump clauses, today’s sellers want certainty, not hope or someday.
Once you have a firm offer on the place you want to buy, you put your home on the market. You have a closing date on your home and can now plan a strategy to sell. Being in control of your destiny is essential. I see many home buyers running around, having to make rash decisions and sometimes making the wrong moves.
It’s prudent to have a strategy in place and know the outcomes you want.
“Risk is left over after you’ve thought of everything.” Carl Richards