Clients info@timotitoju.com 306.591.6524

Buy or Sell First?

Buy or Sell First?

Posted: Thursday February 8, 2018

If you are considering looking for a new house, and are a current home-owner, then chances are you're wondering what your strategy should be: do you wait to find the perfect new home before you put your current house on the market, or do you sell first and then look around? You have a few options. Use the following as a guide to explore what might be the best move for you.

Sell First

There are several benefits to selling your current house before searching for your next home. First of all, once you have sold your house, you will know precisely how much money you have to work within your budget. With a particular price range, you'll be able to narrow the pool of houses before you begin looking and negotiate accordingly. Knowing the field will allow you to immediately make firm offers on homes that you are serious about purchasing. You can be first in line with an unconditional offer you know you can afford, and this will grant even further negotiating leverage as Sellers tend to take an unconditional offer more seriously. When they counter or turn down an offer that's conditional on the sale of a home, they usually think the Buyer will come back with a better and more firm offer once they have sold their current home. However, if you make an unconditional offer, the Seller will usually give you more consideration, as they realize you're probably looking at other properties and will move on if your offer is rejected. Likewise, if you have already sold your house, you probably do have a broader opportunity to look around, negotiate, and find the best deal and fit for you and your family.

The flip side of this scenario, however, is that if you don't find the right property before the closing date of the house you've already sold, you may have to look for temporary housing until you do see what you're looking for.

So, before you opt to sell first, you should determine whether you have alternate, temporary options, in case you have to move from your house before you've found a new one. How would you and your family deal with living in a transition home for an undetermined period?

Buy First

Buying a new house without having sold your current home may occur if you are interested in a specific property and will only sell your existing home if this property comes on the market. It may be a matter of timing—grabbing hold of the house before it's too late. Also, if a feature you haven't had your eye on previously, but that catches your attention due to its uniqueness or unbelievable price. If buying first means you don't miss out on the real estate opportunity of a lifetime, it may be the best move.

However, be careful. If you buy another property and aren't able to sell your current home quickly enough, you could end up having to finance both houses and shoulder the extra debt until you sell. You can get a financial appraisal or market evaluation of a home before selling, but this doesn't guarantee the price you'll ultimately receive for the house after the negotiation process has run its course. Since your selling price will be an unknown, jumping into a purchase could be a gamble, mainly if your budget is tight.

Make sure you're familiar with all aspects of the financial reality this scenario would create before you purchase another home. You may face the challenge of owning two homes at once. What type of financial stress would this bring to your life and how would you deal with it? Consider the fact that if your current house doesn't sell quickly enough, you may be forced to sell it off at a reduced price in order align the closing dates of your two properties. What effect would this have on your financial situation?

Conditional Offer

An additional option involves making your offer to purchase conditional upon the sale of your current property within a specified period. Conditional offers usually include a clause that allows for the Sellers to keep their property on the market and remain open to other offers while you try to sell your home. If the Sellers receive another attractive offer before you've sold your home, they may accept and ask you to either remove your condition and firm up your offer or to back down from the offer. A conditional offer forms a kind of middle ground, an area of compromise, for those who are afraid to sell or buy first—but doesn't hold the advantages of the other two options.

One of the drawbacks of the conditional offer is that Sellers tend to take them less seriously. They give stronger consideration to firm offers. Conditional offers leave you with less negotiating power. In fact, some Sellers will merely turn down or counter a conditional offer. Other Sellers will believe the Buyer will come back with a more serious offer when their home has sold. So, you may end up having to increase your offer to have your conditional offer accepted and keep your foot in the door of your desired house.

Even if your conditional offer is accepted, there is no guarantee another Buyer won't step in and overthrow your offer before you have sold your current home, which would put you back at the starting line. Also, consider the fact that you cannot withdraw your conditional offer until the end of the period specified in the contract-which means that if a better deal comes along, you will have to wait to jump at it.


Regina Real Estate Blog

Interested in Buying a new home or Selling your existing property? Not sure where to start? Below you'll find articles tailored to give you a hand with many different tasks involved in the process.

WALL TYPES AND MEASUREMENTS BEFORE YOU START RENOVATING
Market Report October 2022
HOW TO CLEAN YOUR COUCH
Market Report September 2022
6 TIPS TO CONVERT YOUR HOME TO A RENTAL PROPERTY
Market Report - August 2022
5 KEY THINGS TO KNOW BEFORE YOU BEGIN THAT KITCHEN RENOVATION
Market Report - July 2022
EASY STEPS TO CREATE YOUR OWN SPA RETREAT
Market Report June 2022
DO’S AND DON’TS WHEN MOVING WITH PETS
Market Report May 2022
TO DIY OR NOT TO DIY – DOES DO-IT-YOURSELF PAY?
Market Report April 2022
7 EXTERIOR COLOR COMBINATIONS FOR INVITING CURB APPEAL
Market Report March 2022
A GUIDE TO SURVIVING THAT KITCHEN RENOVATION
Market Report February 2022
4 THINGS YOU SHOULD KNOW ABOUT CREDIT REPORTS
Market Report January 2022
5 COMMON MISTAKES FIRST TIME INVESTORS MAKE
December Market Report
5 EASY WAYS TO FALL IN LOVE WITH YOUR HOME ALL OVER AGAIN
MAINTENANCE TIPS FOR A WOOD DECK
3 HOME IMPROVEMENT JOBS YOU SHOULD CONSIDER HIRING FOR
EVERYTHING YOU NEED TO KNOW ABOUT LOAD BEARING WALLS
WHY IS INVESTING IN SENIOR HOUSING A GOOD IDEA?
November Market Report
7 MONEY-SAVING HACKS YOU SHOULD KNOW FOR YOUR HOUSEHOLD
HOW TO MAKE A SMALL BATHROOM FEEL BIGGER
DESIGN TRENDS TO WATCH
3 WAYS TO TRANSFORM YOUR PLACE WITH JUST A COAT OF PAINT
HOME FLOORING & MONEY SAVING TIPS
5 WAYS TO BECOME RESPONSIBLE HOMEOWNERS
HOW TO AFFORD TO BUY YOUR FIRST HOME
WHAT YOU SHOULD THINK ABOUT WHEN RENTING AN APARTMENT
4 TIPS FOR SELECTING THE RIGHT PAINT COLOR FOR ANY ROOM
TIPS TO PLAN AND DESIGN YOUR SCREEN PORCH
5 HOME IMPROVEMENTS WITH THE BIGGEST RETURN ON INVESTMENT
5 THINGS TO DO THIS YEAR IF YOUR GOAL IS TO BUY A HOME
HOW TO CREATE A CHILD-FRIENDLY KITCHEN
3 MISTAKES TO AVOID WHEN HIRING A HOUSE PAINTER
CLEVER CLOSET SOLUTIONS FOR RENTERS
7 ORGANIZATION FOR A BETTER HOME OFFICE EXPERIENCE
EMPTY NESTER? WHY IT MAKES MORE SENSE TO MOVE RATHER THAN RENOVATE
EVERYTHING YOU NEED TO KNOW ABOUT FLOOD INSURANCE AND WHETHER YOU NEED IT OR NOT
CREATE YOUR HOME(WORK) STATION
DECORATING IDEAS FOR APARTMENT LIVING ROOMS
5 BASIC THINGS EVERY REAL ESTATE INVESTOR SHOULD KNOW
HOW TO PREPARE FOR RENTING YOUR FIRST APARTMENT
THE AVERAGE COST OF ADDING A KITCHENETTE
REDECORATING YOUR KITCHEN? HERE ARE A FEW IDEAS
KEEP YOUR PLACE IN PERFECT SHAPE WHILE YOU’RE AWAY
3 TIPS FOR MAKING YOUR HOME APPEAR PET-FREE WHEN TRYING TO SELL IT
HOW TO INCREASE YOUR HOME’S VALUE WITH WATERPROOFING
6 IDEAS FOR ORGANIZING YOUR CLOSET
TOP 6 FEATURES OF A PROFITABLE RENTAL PROPERTY
5 BASIC IDEAS OF MODERN HOME DECOR
HOW LONG YOU SHOULD LIVE IN YOUR HOME BEFORE SELLING IT?
4 TIPS ON HOW YOU CAN SELL YOUR HOME FAST
7 STUNNING WAYS TO DECORATE YOUR LIVING ROOM
4 THINGS TO AVOID WHEN SELLING YOUR HOME
6 TIPS FOR BUYING YOUR FIRST RENTAL PROPERTY
RENT OR BUY A HOME? THE BEST OPTION FOR YOU
7 HELPFUL USES FOR LAUNDRY DETERGENT
6 ROOM DECORATION IDEAS FOR YOUR HOME
5 BATHROOM PAINT COLOR TRENDS
HOW TO GET THE MOST FOR YOUR MONEY IN A SELLER’S MARKET
HOW TO KEEP CLEAN AND SAFE RENTAL PROPERTIES
7 INTERIOR TRENDING DECOR IDEAS
5 TOP REAL ESTATE NEGOTIATION STRATEGIES
January Market Report
BUYING A BATHTUB? HERE’S EVERYTHING YOU NEED TO KNOW
Avoiding Moisture Problems in the Home
Create More Space in your Kitchen
Balancing the Emotional and Practical Sides of Buying a Home
4 REASONS TO GET INTO REAL ESTATE AND STAY IN IT
HOW TO GET BUILT-IN SHELVES ON A BUDGET
October Market update
June 2020 Market Update
How to Quickly Improve Indoor Air Quality
Conversation with Jenna McKay
Estimating Your Selling Costs
April 2020 Market Update
Healthy Lighting for Your Home
Surviving COVID
Real Estate Chat with Kyle Kerr
Morning Chat with Melissa McCullough
Regina and area March 2020 Market Update
WHAT TO REPAIR BEFORE YOU LIST
First Time Home Buyer Tax Credit
Pricing your home
Making “Neighbourhood Targeting” Work for You
Lets Talk Tuesday
January 2019 Market Update
Should You Move or Renovate?
Light Your Way to a Faster Sale
4 Ways to Make the Home Hunting Process Easier
Tips for Selling Your Home In a Slower Market
3031 Fuller Place, East Regina
7 Emerald Vista, White City Sk
4427 Wolf Willow Place
Home Tour: 2169 McTavish Street, Regina SK
8 Mistakes to Avoid When Buying a Home
Second Time's a Charm
Buy or Sell First?
Tips for Showing your Home