What to Do When You Have To Sell in Order to Buy
The Sell/Buy dilemma. Never an easy one. Every situation is different, but for many in this current market, one would likely think Sell then Buy.
Most of us today can't afford to have two mortgages. That means if you own a home, unless you are willing and able to purchase without selling, you should be selling your home first. The advantages are:
You know exactly how much money your house will bring
- You will not feel pressured to sell your home
- It will make you a stronger buyer with more negotiating power
Gone are the days of the "bridge loan". (A short term loan by a bank meant to cover an interval between two transactions.) They just don't happen anymore.
So what do you do when you own a home but want to buy another? It's tricky, right? After all you will need a place to live after you sell. The home buying process was much easier with your first purchase. Likely you didn't have all this stuff, your down payment was in the bank (instead of your house), you didn't have kids, pets and a buyer that you had to wait for.
In today's market most sellers, unless they are compensated for the risk, will not entertain an offer contingent on someone selling their home. Why? By taking a home sale contingency, they are effectively taking their home off the market until you sell your home. It's a big risk to any seller.
Having your home sold, (or under agreement with a strong purchaser) allows a seller to consider you as a ready and able buyer.
The best you can wish for is closing both transactions on the same day, so that you only have to make one move.
How do you accomplish this?
My recommendation is if you are thinking of a new home, get your current one on the market. While your home is on the market start actively looking for homes that meet your criteria. Having something in mind that you could go to at all times would be ideal. When an offer comes in on your home, you will know exactly what you have to spend and the time frame to do it in!
What happens when you find the perfect home and yours isn't sold yet?
- First, if your home is not on the market, get it on!
- Second, If it is on the market, reevaluate your position in the market. Adjust your price, terms, and marketing strategy.
- Next, do you put an offer inand risk losing your deposit or do you put in an offer with contingencies and see if the Seller will engage? The answer to that will depend on your motivation for this perfect home. Of course, you will consult with your agent about either approach.
If you want to really know what's happening in your market area,
consult your local Realtor!
Carol-Ann Palmieri is a full time Real Estate professional in Massachusetts for the past 25 years along with her partner Al Mussi have helped literally hundreds of families find, sell or purchase new places to live.
A former US Marine, she grew up in Walpole, MA... is committed to the serving the community through various volunteer opportunities. She attended MA Bay Community and Suffolk University and is committed to constantly updating her Real Estate education.
Licensed in MA and RI...
Al and Cal's primary areas of service Franklin, Bellingham, Medway, Millis, Medfield, Norfolk, Wrentham, Plainville, Blackstone, Walpole, Milford, Holliston, Hopkinton, Mansfield, and Foxboro, North Attleboro, Norwood, Hopedale, Mendon, Millville but have resourses to help anyone, anywhere....
Their mission.... To exceed your expectations!