Al and Cal Homes and Community: What to Do When You Have To Sell in Order to Buy

What to Do When You Have To Sell in Order to Buy

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
buy sell dilemma,

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.    

 

Regardless of what you do,

 

 if your home is already on the market, 

 

 you are already moving in the direction towards your new home!

 

Looking to Buy, Sell, Rent or Invest?  

 If you want to really know what's happening in your market area,

                                      consult your local Realtor!

 

         Call me if you have a question about the market.  508-494-9061
      Put my 25 years of experience to work for you!     

 

Carol Ann Palmieri

 

About the Author

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.
Carol Ann Palmieri

 


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!

 

Carol-Ann Palmieri

Al and Cal Realty Group

Remax Executive Realty

www.AlandCal.com

 

Cal@AlandCal.com

 

508-494-9061

 

Comment balloon 11 commentsCarol-Ann Palmieri • July 27 2013 04:51AM

Comments

Good morning, Carol Ann.... in a sellers' market, it's easier to sell than to find a resale home that may fit your needs....however, the seller of that home may not take your deal if you do not have your home under agreement and your buyer commited.... your game plan is the most reasonable in today's market.

Posted by Barbara Todaro, "Franklin MA Homes" (RE/MAX Executive Realty ) about 5 years ago

This is excellent advice Carol Ann.  I have seen many get frustrated because they start looking for a new home first and get upset when it sells before they have the available funds/means to buy.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) about 5 years ago

Good Morning Carol Ann

 

Thanks for the post and excellent information. Sell to Buy transactions are risky unless, as you say, the seller is buying the new home as an cash transaction. Thanks for sharing. Have a great day

Posted by Patrick White, Driven to bring New Yorkers home (Home Driven Realty, Inc) about 5 years ago

Carol Ann, great pointers for sure..make sure as the seller and the buyer you have a back up plan on where you can move.

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) about 5 years ago

Hi Cal, 

Timely blog for me as i have two clients who are buying new builds and have to sell their homes before we get to sheetrock stage of the building process. I listed one of thse homes this week and the other maynot be until second week in August as they have work to do  on their home. I may have to seek advice from you as this process moves along! I will suggest.. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) about 5 years ago

Carol Ann, Great insightful post and a true delema for most.  Gone are the days of finding a house without the buyer placing their home to sell on the market.

Posted by Christine OShea (Christine E O'Shea Real Estate Broker) about 5 years ago

Carol Ann, if given 2 choices for a seller with contracts the one with the least problems may win the deal even if the value s lower. Sellers want to know when they will close and not have it be dependent on someone else's sale

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) about 5 years ago

Hi Barbara, Anita, Patrick, Ginny, Bob, Christine and Ed!   Thanks for taking the time to read my thoughts.   I hope you all have a fine Sunday! 

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) about 5 years ago

Hey Cal-just got back from a nice kayaking morning and was thinking of you-happy Sunday!

Posted by Marco Giancola, Realtor (305)608-1922, Miami Beach Florida (Beachfront Realty) about 5 years ago

Hi Marco.   So crazy busy I haven't gotten out there.   : (    Hope you are doing well.  c

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) about 5 years ago

Hi Cal,

Just stopping by to say hello and thanks for being a supporter of mine for a long time. I really appreciate your wonderful blogs, advice and your commenst on my stuff. Thank you.. You are a good virtual friend. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) about 5 years ago

Participate