Home Buying in 20007>Question Details

Mark, Other/Just Looking in 20007

What is the best approach to selling your current house in order to buy your new house?

Asked by Mark, 20007 Sun Apr 26, 2009

We have a house that will sell easily, but do not want to sell it until we find our "dream" house. We are still looking and have not found the next house we want which will be close by to where we now live but in a better school district. We want to take advantage of the current interest rates and the fact our house has kept its value in this market, while where we are moving to the drop in prices has been steeper. Our agent wants us to sell our current house first, but we feel nervous doing that if we can then not find our next house. We have a young child so want to avoid that stress. Any ideas, advice appreciated!

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Mark,
I do encourage you to sell your home first. You will be a much stronger buyer if you do and therefore may be able to negotiate a better price. Also keep in mind your home may not sell right away. If it does you can have a contigency if you dont find a replacement home then there is no sale, or you can rent for a while, or you may be able to rent back from new owner for a while. I strongly recommend to sell your home first.
1 vote Thank Flag Link Sun Apr 26, 2009
Mark - if you get into your new home and due to things beyond your control or foresight you can not sell your current home, will you be comfortable paying for both long term? the answer to this for most people is no, so I would say listen to your agent. I understand the heartburn over the process, really, I do. However, I have seen far too many people learn from experience, heartbreak and eventually financial ruin, that they should have sold.

Best of luck to you!
1 vote Thank Flag Link Sun Apr 26, 2009
Mark
Your question is not uncommon. When you buy, you want to be in the strongest bargaining position. right?
When you buy, you are trading up, right? Would you agree that there are fewer buyers for more expensive homes and more buyers for less expensive homes?

Trading up is the best thing to do in a declining market because the higher priced homes will have to discount their prices more in order to attract buyers. Therefore even if you lose a little on your current home, you will make up for it when you buy the more expensive home.

The key is to set clear parameters up front. Talk with your Realtor about how to maximize the profit when you sell. Part of that is "terms". Discuss your options. In most cases "seller to find home of choice" is not helpful. However, once you sell your home, negotiating a lease back if you need a little bit more time might make sense.

Know your goal. Ask the questions now, from all angles, so once you move forward, you can move with confidence. Ask a lot if 'What happens IF... questions
1 vote Thank Flag Link Sun Apr 26, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Mark,

You can sell your home: "contingent on the seller purchasing another home", a clause that used to be called something like "Home-of-Choice". Your agent can fill you in on the details.

You'll miss some portion of the buying public with this, but then again you may encounter a buyer whom this suits perfectly, (one who also wants a long settlement period). Hey, you never know! Good luck,

--RICHARD--
Coldwell Banker--Bethesda
301-801-2970
rhelbig@cbmove.com
0 votes Thank Flag Link Mon Apr 27, 2009
Hi Mark
Wow, your question seems to be loaded with questions! For starters, if you are working by buyer/agent agreement with your realtor, why are you not aware of all your options? Assuming that your agent is aware of information not provided in your question, the best short answer is that other options are available and as an agent, my advice would be that you discuss this matter further with your agent by asking what all the options are and than chosing what works best for you.
Web Reference: http://dcvamdhomes.com
0 votes Thank Flag Link Mon Apr 27, 2009
Good morning Mark,

Your position is not uncommon and your agent's advice is sound. They are trying to keep you out of a potentially stressful situation. You can wait to list your property once you have ratified on your "dream" house, but you must be prepared to carry the property if it does not sell before settlement on your new home.

Good luck,

Christopher
http://www.DCchrisBlog.com
Web Reference: http://www.DCchrisBlog.com
0 votes Thank Flag Link Mon Apr 27, 2009
It is absolutely critical to list it aggresively. Time is your enemy - if it sits on the market over 3 weeks you will ultimately leave 1 to 3 percent on the table. The first 2 weeks is when you have all the momentum and exposure in your favor. Do not make the mistake of saying "if it does'nt sell I can always lower the price, this is true but you can never get back the days on market ( a critical statistic that buyers study when submitting an offer). If you price it properly you will get it in escrow right away and you will make up for any percieved loss on the purchase of your new home, not to mention the lower property tax base due to the current lower sale prices ( in California - each state may be different in calculating property tax base).
0 votes Thank Flag Link Sun Apr 26, 2009
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