Buy first, or Sell First: What to do?

   I have a number of clients facing a peculiar, but increasingly common dilemma, whether to sell or buy first. If you sell your house first you run the risk of selling it before you locate a new house to move into. If you buy first, you have to come up financing while you wait nervously for your house to sell.

   Selling first has its advantages. When you sell your home first, you'll know exactly how much you can afford to pay for your new home. You’ll have the cash available, and “cash is king” in this market. It’s important to get pre-approved for the financing so you’ll know exactly what price range to shop within. During negotiations, you'll be in much stronger position to make a non-contingent offer, which is much more likely to be accepted by the seller than an offer that has a contingency attached to it.

   If you sell your house first, try to negotiate a longer escrow so you have time to shop for your next home.  You'll want to negotiate a few days to a week possession after closing perhaps so you can sell your home and move right on in to your next home.  You can alwasy explore the possibility of short term rentals, and know that you might have to put your furniture in storage.

   When buying first, it might be necessary to place a contingency clause in the offer.  This clause states that the purchase is conditional upon the sale of your current property, usually within a specified time. A contingent offer has some disadvantages. You run the risk of being rejected by the seller for a more favorable offer without a contingency. Sellers are less likely to accept a contingent offer when they have other offers that don’t carry this contingency clause.

   Whether you decide to sell first or buy first seek the advice of a professional real estate agent who can guide you through this tricky process.   http://www.askadvantage.com/