I often hear the question, “But, Sue, how can I sell my house before I find a house to buy?”
Sellers fear that they will be out on the street … HOMELESS! … if they market their home and get a contract before they have identified the house to which they want to move. In this article we will discuss But how can I sell before I find a house to buy?
Reasons it makes sense to SELL BEFORE YOU BUY:
If the seller will accept your offer contingent on you selling your current house (and many will not!), you may have to pay a monetary premium for their house. You would be an “iffy” (undesirable) buyer at this point (especially in the current market environment). So, the seller will need to be enticed to consider your offer. Money talks – and you’ll need to put your money where your non-contingent offer should be.
You’ll need to spend money on your (hopeful) new home within a few days (lots of money) … structural inspection, termite inspection, radon inspection, & appraisal fee. None of this money will be refunded if you do not buy the house.
There is usually a “kick out” provision in a contingent offer… the seller will continue to market the home. After you have spent the money on the items listed above, you may get notice that the Seller has received another offer they wish to accept … FROM A NON-CONTINGENT BUYER!! The seller will “kick you out” and accept the other offer if you can’t remove your contingency! This is VERY upsetting!
You don’t know how long your house will be on the market before you get a contract. The pricing is always subjective and if the correct price point is not “hit” quickly, the house may linger without a buyer.
Once you do recieve an offer, you can make your acceptance contingent upon identifying your home of choice within a specified amount of time. THEN you hop into your Realtor’s car. There is a finite number of houses in your price range, with the amenities you desire, and in the location you want at any given time. Now you are ready to shop … for the inventory that is available NOW!
When you find the desired new house and submit a contract offer, you are now a desirable buyer! You have your house under contract, the seller is excited to have a “real buyer”, and more likely to negotiate favorable terms with you. The only contingency on your purchase now is that you settle on your current house prior to settlement on the “new” house.
Ready to move? Call your Realtor, get your house in showing condition, market it at a reasonable price, find a buyer who will give you time to locate your “home of choice”, and now go shopping! You are a ready, willing and able buyer!
-Sue Wettstein Brazzel
But how can I sell before I find a house to buy?
Read another blog post here.