Buy First or Sell First?
If you already own a home, one of the most important decisions you’ll have to make is if you should buy first or sell first. For some people, it’s not a choice. They can’t buy if they don’t sell first. For others, they won’t move if they can’t find a new home they love.
What about house sale contingency offers?
Finding home sellers who will accept a house sale contingency contract is rare. Those sellers probably need to sell in order to buy their new home, or they are ready to get the house sold and close that chapter of their lives. Either way, they don’t want to tie up their house and put their plans on hold, hoping you are able to sell your house.
If they do consider your offer, you’ll lose out if you are competing with someone else who doesn’t have to sell a house to buy their house. Or you’ll pay more because they figure they are taking a big chance on you, but why would they do that and also come down off their price.
If you do decide to only consider homes to purchase if they will accept your house sale contingency contract, you will have very limited choices for the new house. And if you do find someone who will do it and you want the house, you will be in a rush to sell your home and pay more on the new home.
Bottom line is that very few sellers will consider a home sale contingency contract in St. Louis. You are better of deciding if you should buy first or sell first.
I’m going to create 2 new videos that are much more to the point. In the meantime, I’ve embedded this video twice so you can start at the correct spot depending on if you want to buy first or sell first.
Sell First, then Buy a Home
PAYING FOR THE NEW HOUSE
- you can’t get a loan unless you have sold your current home
- you can’t come up with a down payment without selling first
PEOPLE WHO SELL FIRST UNDERSTAND:
- they might have to live in the new house while doing updates
- they might have to pick a house quickly based on what is available once they sell, or go into a rental or stay with family temporarily so they have more time to look
- they really need to (or want to) move even if it means they have to compromise on the new house, or deal with some inconveniences like staying with family or doing a double move
- they shouldn’t decide what they can spend on the new house until they know what they will make on the current home
- even though they could, they aren’t willing to risk owning both homes for a while
Watch the video (1:45 – 8:47) to find out more about selling first, then buying your new home.
Buy First, then Sell your Home
PAYING FOR THE NEW HOUSE
- you are able to get a loan or pay cash to buy before you sell your home (or get help from family to buy and then reimburse family once you sell)
PEOPLE WHO BUY FIRST:
- are willing to own both homes for a while so they can buy as soon as they find a home they like, even if their house isn’t on the market yet
- don’t want to move unless they can find the right home
- don’t want to feel rushed to pick out a new home
- need to do a single move…so they won’t go into rental or stay with family, but also don’t want to have to rush to pick a house once their home sells
- school is getting ready to start and they need to know where to enroll their kids
- are willing to turn their home into a rental, or take a loss, if they can’t sell for what they want
Watch the video (8:48 – 15:20) to find out more about buying first, then selling a home.