There are many homeowners, who want to move up in life are often found in a dilemma, they just keep on thinking what to do while buying the new house for themselves; should they sell their house before buying the home for themselves? Or should they purchase the home first, and then think to sell the house. Let us see the reasons for selling a house before buying a home.
It is the major issue indulged in the mind of many homeowners. There will be various real estate agents who will advise the homeowners in this situation is that you should buy the house before you sell yours, but most of the times it is seen that it is not in your best interest. But surely it will be in the best interest of the agent, as if you buy the new house, you will also need to sell your home, and this means the agent is guaranteed with two deals.
It does not matter what will be the cost incurred by you while doing so, as you will be the owner of the two houses and you need to pay the bills for two homes.
In case you have opted for to sell your house first, and then you want to buy the home for yourself, then if your home has not attracted a good number of offers which you don't want to accept, then your real estate agent will get nothing.
And you can consider doing this, and there is also no risk in doing it. As your agent will also try hard, to sell your house so that in this way he can make some money, and you are also secure with your home.
But the one thing is always true in the real estate market in that you can make all your moves as per the market, and you have to analyze whether it is buyer's market or seller's market. As for several buyers and sellers, it is always advisable to sell your home first before buying another home for yourself.
Most of the times the homeowner wish to sell their home before buying another are that in that way they can maximize the profit potential of their home. They also don't want to get the strain or want to be under pressure to feel forced to quickly sell their existing house so that they can close on the new home. There are ways to plan and schedule the concurrent closing, which includes making the sale of your home contingent on finding a house which you can buy.
Whatever strategy you wish to employ will have a bearing on the type of real estate market in your locality. It is also seen that buyers are much more willing to wait for the seller to find the replacement home in a seller's market, but in buyer's market you will not find anything like this, and they will not afford to wait till you sell your existing house. Below we will find the relevant aspects and reasons to sell first then buy.
Important Reasons To Sell First Than Buy
You are in the position to negotiate.
If you opt to sell your existing house first, you will always have the luxury of the time with you. You don't need to make any insensible of a hasty decision as you can afford to wait as you already have the place to live. Which is your existing home?
Sales price can be higher.
Sellers if are not under pressure to sell the house are usually get higher sell prices for their home, as buyers can make out that the seller is not that desperate to sell the house. You will not get to hear - 'discount your offer,' and in this way, you can get the higher prices of your home.
The Concurrent Home Closing Contingent.
The seller can make the sale as home contingent on closing concurrently with the purchase of new house, and in this way, they are conveying to the buyer is that - If a seller is not able to find any house to buy, he is not obliged to sell the house to the purchaser. It leads the seller not to have to name the property address. And you can easily wait to buy the new house and then only you can sell yours.
You can imagine that if in the case the real estate agent of the buyer is smart enough and able to strike a concurrent closing clause from the agreement. The next best thing which you can do is to ask for a period so that during that time you are free to look for the replacement home for yourself. You should always know that the contingency period gives you the power to cancel the agreement during that period if you chose to do so. Contingency period is in the range of about seven days to twenty-one days.
Renting, after the home closing.
Some of the sellers who are in search to find the perfect home for themselves, and want some time to do it will usually opt to rent after closing. In case if the buyer is not in a hurry or require immediate occupancy, the seller can rent back their home for the amount of buyer's new mortgage payment. There can also be the situation that the seller moves out of the house, but left his belongings into the storage and till that time rent an apartment for a short duration.
You should understand that you should take the move, after deciding what the nature of real estate market, when you have opted to sell your house, and you are in a great dilemma about what to do first. You want to sell your home first instead of to buy the new house for yourself and then sell your existing house.
Your real estate agent is experienced and competent; he can also help you out with his experience and ability to make you take the right decision as per the situations.