Today a typical homeowner sells his or her home every seven to ten years and the average individual will move about twelve times during their lifetime. Just one or two generations ago, it was common for folks to live in their home for 20 years or more. Many of these current owners will sell and buy simultaneously a number of times in the future.
Homeowners who are planning on downsizing or a move up, often wrestle with this dilemma, “Should we sell first or buy first”? That’s the quagmire many homeowners will face, what comes first, the chicken or the egg, this depends on the market. Is it a buyers or a seller’s market and your personal motivation. Under normal circumstances, the best sequence and the smart thing to do is sell before you buy. Market conditions such as interest rates and the number of homes on the market can have an effect on your choice. Everything being equal, there are a number of reasons to sell first and then buy.
Advantage to Negotiate: By selling first, you have the luxury of time. You are not in a hurried state and do not feel pressured in taking the first offer, unless the first proposal is too good to refuse. The old adage “Your first offer is normally the best offer” does not always hold true. Occasionally, the terms are as important for the seller as the sales price.
Higher Sales Price: Sellers who are not under extreme pressure to sell, often obtain higher sales prices because buyers realize the owners are not in a desperate state. Nothing yells “discount your offer” like a listing that reads “Seller motivated, in contract on a replacement home”.
Contingent On Concurrent Closing: You can protect yourself with this one statement in the listing agreement and counter offer, “Contingent on seller finding a replacement property”. This verbiage will completely protect the homeowner and your basically telling the buyer, “If I can’t find a home I want to buy, I’m under no obligation to sell to you”. If the buyer is willing to sign an agreement under these conditions, then the seller will have an agreed upon time to find their replacement property, normally two to three weeks.
Close Escrow Then Rent: Some sellers might need more time to find that perfect replacement home. If the buyer does not require immediate occupancy, the seller can request a rent back of their home for the amount of the buyers monthly mortgage payment. Over the years, I have personally had the pleasure to work with many homeowners that sold and bought a home simultaneously . The fears and concerns that every seller might experience during this tumultuous period, can be minimized by following these highly effective tips. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on selling and buying a home, read my other powerful blogs and to view all local area homes for sale.