Sell One, Buy Another

Many of our clients already have a house that will need to be sold so that they can move on to that new property. The timing and coordination for such a transition is detailed and frequently delicate. There are a number of considerations and then steps to be taken together with your REALTOR® to ensure a smooth move.

We have helped multitudes of clients over many years and many different markets navigate the course successfully, so no worries, you are in good hands!

There are 3 different options when you already own a home and wish to move on to another:

Buy first, sell after
Sell first, then buy
Compromise, buy conditional to the sale of your current home

Together we help our sellers/buyers access the option for their circumstances but here are some general considerations for each scenario:

BUY FIRST

Benefits

Puts you in a strong negotiating position with the seller as offer is clean and provides more certainty to them

Eliminates the need for two moves which can be disruptive to your family and pets. Also, two moves is not without it’s potential additional expense i.e. storage, pet boarding, temporary rental
Opportunity to snap a very special or unique home without the risk of losing it to another buyer.

Risks

You could end up with two homes, two mortgages.

With the end selling price of your current home unknown, jumping into a purchase is a financial gamble.
The threat or pressure of carrying debt of two properties may force you to sell at a reduced price.

SELL FIRST

Benefits

You know exactly how much money you have to work with and the closing dates that will work best.

You are in a strong negotiating position regarding financing with no home to sell

Risks

If you can’t find the right house by your closing dates you may have to find temporary housing, storage, pet boarding, etc..

You may feel pressured to settle for something that you don’t really love especially in markets where there is very little inventory.

COMPROMISE, A CONDITIONAL PURCHASE

Benefits

Eliminates the financial risk of either owning two homes or no homes.

Generally means that you will only have one move, directly from old house to new home.

Risks

You may pay a premium price as sellers generally do not regard conditional offer as serious.

Some sellers won’t even consider an offer ‘subject to the sale’ of your current home.
Most conditional sale contracts include a ‘time clause’, which means that sellers are free to entertain other offers, and if they accept a back up offer will ask you to remove your condition within a specified time (i.e. 48 hours) or you lose the deal.
You cannot withdraw your offer until the date of the condition expires, which means if a more suitable desirable home comes on the market your hands are tied, leaving unable to offer on that new listing until you are no longer committed to the first offer.

As you can see there is much to consider. Your REALTOR® is there to help you through it all.