You have no doubt heard the word in regards to the chicken as well as the egg and which came first. Many people have similar thoughts about Real Estate. I’ve met countless clients that were searching there local MLS and visiting open houses for months, however they haven’t even started the property SELLING process yet.
Many people start with looking for their next home. Now, while there is certainly nothing wrong with going for a peek with a few homes to ensure that you have to move, you may be throwing out some cash in that way.
You could possibly be thinking, “how can I often be throwing money away by just looking for a home first?” Consider this quite typical scenario:
You start seeking your “dream home” before deciding to list your home available. You scour the MLS, have a look at some open houses, probably arrange private showings by incorporating of the listing Realtors, hopefully for the sake you enlist the services of a Realtor in the process (there exists multiple article on this web site detailing why that is beneficial for you).
Now, imagine you see that perfect home, and want to write a proposal. Now what?
You can write the offer “at the mercy of sale” which suggests if you do not sell the house in a reasonable amount of time, you are able to out of the home with the purchase. This condition can also get a time clause, where if your seller get’s another acceptable offer, they’ll provide you with a certain length of time (usually 24-48 hours) to take out your conditions. As you’ll be able to probably imagine, any offer which is at the mercy of the sale of another property, is not a really strong one, and instead gives off you a smaller amount leverage when negotiations start.
So, you’ve likely created a amount of cash the table in the acquisition of your brand-new home. Now when it comes to selling your current one. You have an accepted offer in your “dream home”. Now you ought to rush to get your present one on the market. This will take at the very least a couple of days. You will likely have to price it a little lower to ensure that you get an offer quickly.
Hopefully, along with your aggressive pricing, you will get that quick offer. Let’s say the offer is $10,000 below your selling price. While normally this could be a fantastic place to start for negotiations, you now have to ask yourself, am I willing to lose out on my ‘dream home” by aggressively negotiating using the buyer? You can try, but in the event the buyer decides simply to walk away, you happen to be that much nearer to losing out on that new home.
So in summary, you likely left some cash up for grabs at all three points of the transactions: acquiring the new house, listing lower to obtain a quick offer, and accepting a cheaper price . so that you can solidify the acquiring your brand-new home. To produce a fairly long story really short… sell your overall house first! You’ll be glad you did.