Reasons to Sell Before You Buy

Published by cravat | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs, Uncategorized

Have you thought about your reasons why you are selling before you make any decisions on buying? Owners who plan to make further investments usually juggles with dilemma on either to sell first or buy first. You will meet a lot of agents recommending you to purchase before you sell but that is not often in your best interest. It is in the sales agent’s best interest when you purchase, you also need to sell. Agents will be assured double sales, despite of how much money you put in this investment. 

If you come to a decision to sell first and then purchase, your property does not sell or it may possibly attract very low offers that you do not want to accept, the agent obviously will get zero. You might want to think of that. 

Certainly, the debate on which comes first. The chicken or the egg, still remains – now you assess is it a buyer’s or a seller’s market. At the end of the day it is always intelligent to sell before you purchase. 

I will give you reasons to sell first. 

It gives you the capacity to bargain. By being able to sell first, you have the luxury of owning time. It does not make you grab the first offer that comes down because you already have a place to stay. Your own home. 

A much higher sales price. Owner or seller who are not pressured to make a sale often attracts higher offer because potential buyers understand that the owner is not worried at all. Nothing yells “discount your offer” like a listing that reads: “owner inspired purchased a new one.” 

Dependent on simultaneous closing. By creating the sale of your property contingent on closing concurrently with your new investment, “If I cannot obtain the property I want to invest in, I am under no responsibility to put it on the market.” You can simply say: “This sale is dependent on closing alongside with the purchase of seller’s replacement home.” If you have a clever buyer’s agent would not let a buyer instantly sign documents with a contingency clause like that; nonetheless, I usually get away with inserting that clause because some agents understand its proposition. 

Contingency Period. Give the buyer’s agent is clever enough to smack a concurrent closing clause from the contract. The next smart thing to ask for is a time period during which you are open to find for a replacement home. A contingency period will give you the privilege to cancel the contract during that time period if you choose to, which can range, on average, between seven to twenty one days. 

Leasing after Closing. Some sellers who want to take time to find the perfect home, will usually opt to lease after closing. If the buyer does not require instant occupancy, the seller might rent back their own home for the amount of the buyer’s new mortgage payment. Or the seller might move out, store their things in a storage area and rent a furnished place on a short-term basis.