Buy First / Sell First? Where Do We Start?
Today, buyers and sellers have so many options at hand. Options like the kind of Realtor you would like to hire (expert vs amateur) and whether he/she is a Consultant, Coach or just a Sales Person. Also there are different marketing plans, commission rates, hiring a Buyer's Agents and the big option of “Do I buy first or sell my existing home first?”
Whether you are about to purchase your second home or 10th home, the option to buy first or sell first is always a struggle.
To better understand these options and pitfalls a new report "By First/Sell First? Where Do We Start?" has been released to help Fraser Valley home sellers better understand their options and choices.
1) Buy first and sell later?
This method would be a way to get the exact place you want before selling. But be prepared. There are some stresses here, especially if your current home doesn't sell right away. You might need to make double payments and arrange interim financing to pay for the purchase. In 2016 and 2017 about 80% of our clients chose this way, but you definitely need your banks approval prior to making this choice.
2) Put your place for sale first?
This way you are under no pressure to sell. When an offer comes in on your property, we would negotiate a long completion date to give us time to look around at what is available and make your buying choice buying based on the properties available at the time. 20% of our clients choose this way.
3) Make a subject to sale offer?
This is the worst of the 3 options. Because a subject to the sale offer is the weakest offer, a lot of sellers do not even want to tie up their homes with this kind of a contract but would sooner wait for a "real" offer. As this would be a weak offer you would not able to negotiate the best deal. On a subject to sale offer the pressure is still there to get a fast sale because another offer may come in on the property you are trying to purchase, and we would end up losing your dream home to someone else with a cash or subject to financing offer. Less than 1% of our clients choose this way.
Here are two true stories from our seller’s point of view – one sold first, then bought, and the other bought first, then sold.
SELECTING THE RIGHT AGENT IS CRITICAL
So you're thinking about moving! We've done quite a lot of moving - buying and selling and through each move have learned a number of valuable lessons.
To begin, selecting the right agent is critical! We have used Larry Siebert as our agent six times now and would encourage anyone considering a move to select Larry as your agent as well.
The past two homes we've listed for sale with Larry have both sold in under one week, even though the overall Real Estate market was slow.
Larry convinced us that it would be in our best interest to sell first then buy. This would allow us to get the maximum dollar for our home as there is no real pressure to sell. Secondly, this would put us in the best position to buy since we would have cash available. It is a much safer alternative than buying another piece of property before selling your own. The possibility of being left with two payments on two mortgages would be very stressful.
Larry has many years of experience in Real Estate and has the ability to help find the home that is just right for your needs. Although once our home was sold and the pressure to buy was there, we didn't feel any pressure from Larry as he continued to show us all the options that were available to us. Many times now, it becomes clear that selling first and then buying is the best overall strategy!
We encourage you, as you consider moving to sit down and talk about your plans with Larry. His aggressive sales and marketing strategies combined with his friendly and professional approach make him a pleasure to deal with.
Matt & Debbie
WE CHOSE TO BUY FIRST AND THEN PUT OUR HOME FOR SALE
Just a quick note to let you know we are moving. We wanted to make a lifestyle change and started looking for our new home with our realtor Larry Siebert.
Larry discussed with us the three ways to make a move, but, first and foremost, would be to get pre-qualified at the bank.
1) We could buy first and sell later
2) Put our place for sale first
3) Make a subject to sale offer
To make a long story short we chose to buy first and then put our home up for sale. Yes, there was a fair amount of anxiety on our behalf as we only had two months to sell. Larry and Marlene worked hard to get our place sold. With their proven marketing strategies, we had 52 showings in 47 days and 3 offers, and yes, the 52nd showing was the one that we had been waiting for. We've sold!
Would we do it again? All we know is that if we need to make a move, Larry and his team will make it happen. We know as we have bought and sold with Larry 4 times and have never been disappointed.
Dan & Ruby Falk