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Selling______
Common
Errors | Sell
or Buy First? | Moving Checklist | Preparing
Your Home
The Best Asking Price | Renovate or Move? | The
Value of a REALTOR®
Home Evaluation Form
Should You Sell or Buy First?
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is your dilemma: Should
you wait for the right home to come on the market before putting
your current home up for sale or should you sell first and then
go out and find what you want?
While there is no simple answer
to this question, you will probably come to a definite decision
based on your personal comfort levels with regard to the
following...
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| SELL
FIRST |
| Pros: |
Cons: |
- You know exactly how much money you have from the sale of
your first home and can comfortably choose your next home's
price range and negotiate accordingly.
- With cash in hand you can immediately make firm offers on
any property that meets your needs. If a property pops up
that is perfect or extremely well priced you can be the
first in the door with an offer.
- You have more negotiating power. When Sellers turn down or
counter an offer that is conditional upon the sale of a
home, they usually believe that the Buyer will come back
with a more serious offer if and when the Buyers' home has
finally sold. Sellers give much more consideration to
unconditional offers since they usually realize the Buyer
does have other options and may move on and pursue a
different property if their final offer is rejected.
- If more than one property interests you, you can shop
around, negotiate, and finally settle on the best deal.
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- If the right home is not currently on the market when you
finally sell, and nothing comes up before your closing date,
you may have to find alternative accommodation until
something appropriate comes along.
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| Questions
you should ask yourself |
- Do you have reasonable options available if your closing
dates do not line up and you cannot move into your new home
the same day you move out of your current home?
- How would you and your family react to the stress of
having to rent for an unknown period of time?
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| BUY
FIRST |
| Pros: |
Cons: |
- If you are only interested in moving if a very specific
property comes up, buying first ensures you do not miss out
on the perfect opportunity.
- If a unique or under priced property comes on the market
and you do not think it will last long, snapping up the deal
ensures someone else does not buy it out from under you.
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- If your current home does not sell quickly enough you may
end up having to finance both homes and carry the extra debt
until you do sell.
- You do not know what the final selling price of your
current home will be. If your budget is tight, this could
affect your financial decisions. While you can get
appraisals and market evaluations of your current home's
value, nothing is for sure until you actually get an offer.
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| Questions
you should ask yourself |
- How would you react to the stress of owning two homes at
once?
- Would you have the financial reserves to do this?
- How would you feel if you were eventually forced to sell
your current home at a "fire sale" price?
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| CONDITIONAL
OFFERS |
A third option
involves making your offer to purchase conditional upon your
being able to sell your current home within a specified time
period. Conditional offers usually include a clause that allows
the Seller to continue to market his or her property while you
try to sell your home. If the Seller receives another bona fide
offer, they can accept it and ask you either to remove your
condition and firm up or to step aside. While conditional offers
do not provide all of the advantages of the first two options,
they do offer a reasonable compromise for those uncomfortable
with the drawbacks associated with either selling or buying
first.
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| Pros: |
Cons: |
- You do not have to sell your current home until you have
found and negotiated an acceptable price on your next home.
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- You have less negotiating power. Sellers sometimes turn
down or counter an offer that is conditional upon the sale
of a home. There is a general impression that Sellers give
less consideration to conditional offers than they do to
firm ones. Some Sellers feel that the Buyer will come back
with a more serious offer if and when their current home has
finally sold. You may end up having to pay a bit more for
the house in order to get your conditional offer accepted
and be first in line.
- Another purchaser may make an offer and bump your offer
before you have sold your current home, putting you back at
square one.
- You cannot withdraw your conditional offer until the time
set out in the condition has passed. This could be
frustrating if a better deal comes along and you wish to
pursue it.
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One Hovchild
Plaza - 4000 Route 66, Tinton Falls, NJ 07753
Phone: (732) 918-1340 - General Fax: (732) 918-1906 - MLS
Fax: (732) 918-0716
www.MOMLS.com, The Home for Monmouth/Ocean Real Estate.
Copyright © 2002 Monmouth County Association of REALTORS®
and RJR
Solutions, Inc.
All rights reserved.
Information herein is deemed reliable but not guaranteed.
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