Seller Dilemma: Should I Sell Before Buying A New Home?

Debe

You've laid out some pretty good reasons to either buy or sell first, a dilemma that has always been around and probably always will.

There are so many factors that enter into the equation, and of course in many cases there simply is no choice but to sell first since many cannot financially qualify for a second mortgage, whether they find a dream home or not. Buyer/sellers can now sort through the mess and consider the pros and cons with your terrific list. Good piece for a marketing flyer or in your relocation package.

Jeff

Debe...you spelled it out...This takes it out of our minds into the world of getting things done...Good job

This is always a dilemma on whether to buy first before selling.  In a more "normal" market, I would be more prone to advise on buying before selling, but in the current market environment, I am finding myself advising buyers to sell first and then buy.  Of course, a lot of the decision is based in the financial ability of the buyers/sellers I am dealing with.  If they have the ability, then certainly buying first makes a lot of sense since there are tremendous deals to be had. 

Debe, sound advice and good points to be made on both sides of the proverbial fence. Most of the sellers I work with I want to make sure they weigh everything out, go in with their eyes wide open and know that this is the slowest year since this started according to the NAR.

Still--some of it they don't want to hear!

No easy answer on this one. I will always say no

Debe,

I like the way you try to clear the clutter about decision-making, understanding that the clear thought process can be conformed to individualistic needs and wants... g

Debe, I have found that contingencies are working! Sellers seem to be more responsive to the positive side of at least having a chance to close! Nothing is easy these days so I am placing a lot of these. Some will work...some won't but at least the buyers and sellers have a chance! We are awaiting a closing in New Mexico for one of our local homes as we speak. It is taking longer due to the difference in RE law and protocols. Anything good is worth waiting for! Thanks for the terrific post. Deb

PS...are we still waiting for your Diary entry? *hint*

Debe, this is great advice for move-up buyers. You've touched on all the factors that people need to take into consideration.

Yes the conundrum.  As an EBA, I sometimes get sellers who want to buy through my office, but I don't list (I refer out).  Selling first with a houseful (of kids, pets) is difficult and in those cases it might be easier to buy first.  Leave a few "staging" pieces of furniture, have it clean, easily accessible . . . it works!  Good post about the conundrum!

You laid this issue out very well. Everyone's situation is different, and there is no ONE answer to this question.

Decisions, decisions and they are tough ones for almost every seller/buyer.  Of course almost everyone wants to sell first or at least get their home under contract.  But then, they are left scambling to find a place to live and looking for and finding the right home to purchase in a hurry can spell disaster.

I'd much rather sell first, possible do a short term lease until I'm able to take the time I need to find a new home to purchase.

Debe, I have a fellow who has been waffling around for the last three years. He doesn't want to sell first because then he'd have to move twice, and he can't qualify for the new home loan without selling first.  I see him every day in the gym and he corners me and says "so when are you going to sell my home?"  LOL

Debe:

Your blog is a great one to share with sellers.  Unless they have already moved, they must decide what is best for them.  I do not recommend a contingency clause to remain in the house, even though that may mean they have to move twice.  If the seller is trying to get as much as they can, this contingency will not help.

Debe, you have done an excellent job of outlining the pros and cons.  I too will reblog.

Debe, What a great Post!  Very concise, smart advice on how to handle such a huge decision. 

Debe, there is no clear cut answer to this predicament that every Seller must face. For us when we sold our home in Orlando, we bought our new home in Jacksonville first, then sold it. It just made sense for us and our situation. But there are definitely reasons to do it the other way around.

Sharon

Debe, great post for all sellers to remember...i can say that in my market it is important to sell first...i have a buyer who closed on my listing last month and is still agonizing at not receiving any offers on his home...oh well he should have used me to list their home!  lol 

Way to lay it out.  If they do buy before selling, I would run a cost analysis on the vacant property as though it might take 12-24 months to sell.  I'd also include a very conservative selling price.  While they could rent, that's just a plus, not a given.  I'd paint the most conservative picture possible so they don't get into financial trouble.  Nothing ruins the experience of being in that great new home, as the ehadache of not being able to sell the old one.