Buy First or Sell First?

July 3, 2009 by New Home Connection

Selling one home and buying another can be a tricky situation that one can get into. More often the changeover involves luck more than anything else. Often you ask yourself, do I list my house and risk selling it even before you get a new one to move into? Or do I buy a new home by paying a heavy down payment and then anxiously wait to sell your old house?

Well, there are steps you can take to get you through this dilemma.

Conditional Offer: While buying a new home first, a common strategy could be to have a contingency clause in the offer or the agreement which states that the purchase is conditional and would depend upon the sale of your current home within a specified time. Though not a fool proof, a conditional offer may end up being rejected by the seller. Or you may have to let go of some better offer that comes along while you wait for the specified period to lapse.
Be prepared: As soon as you decide that you are going to move, start preparing. Clean up the closet, the basement and the attic. Make a list of all the repair work and start sorting it out.
Enlist a realtor: Make appointments and do a little research on some real estate agents. Find out the one you are comfortable working with after all you need to trust this person to help you sell your home for the right price. You may also seek his help to find your dream home.
Call your bank manager: Contact your bank and explain your situations to them, chances are they may offer you a home equity loan or a bridge loan that will help you with the down payment for the new home.
Reduce the delay: Is your home a easy sell? If not, find out what is causing the delay. Find out if you are listing it at a realistic price. Or are there any repair works to be done that may be causing the delayed sale.
Selling first has its advantage: When you sell first you will know the exact price range of the new home that you can buy. Once you know that you will be able to place an unconditional offer, which will more likely be accepted that the one that has a contingency attached to it.
Look at some alternative housing: You may have to move out sooner that you expected and would have to make some alternative adjustments like moving with your in-laws. You may also look at some rental accommodation.
Buying and selling of homes can be a stressful and overwhelming process. If you are looking for a Colorado Springs real estate transaction, you may get help from a reputed Colorado Springs REALTOR who will guide you in this transition. Colorado Springs has a huge real estate market. With more and more people looking for homes for sale in Colorado Springs, there’s something for everyone.