Today’s local real estate market is competitive! Whether you currently live in town or are relocating from out of the area, if you own a home and want to buy a new one, the process can be complicated and you will likely be unsuccessful if you don’t know and understand the details. In today’s market, you want to show up as the strongest possible buyer and having something to sell can definitely weaken your position.
In determining the strongest contract, a Seller will of course look at price as a factor and they will also look at the contract terms. One of those terms is knowing that their buyer can close. If you have a home to sell and they can’t be sure if or when your place will sell, that risk might just knock you out of the consideration.
So how can you compete and win if you have something to sell? Let’s look at some things you can do to strengthen your position and get you into the new home that you want. Here’s a quick overview of some possibilities and you can decide which seems best for you.
- Can you buy without selling? This is about ability and willingness. If you can and are willing to move forward on a new purchase without it being contingent upon the sale of your current place then in this situation, selling your current home will not affect your strength as a buyer.
- Sell your new home before you buy. This is an option for many people. They sell their current place and then move somewhere temporarily before choosing a new home. This can make you a very strong buyer because often, depending upon the financials, you not only have nothing to sell, you may also have cash for your purchase.
- Put your current home on the market AND get a buyer before you make an offer on a new place. While in this situation your contract to purchase is still contingent upon the sale of your current home, you will have lessened the risk of your place not selling. You may still want to sweeten your offer with price and terms if you are competing against other possible buyers.
- Put your current home on the market or at least have a date in the very near future by which it is going on the market before you make an offer on a new place. In this situation, the seller has a greater element of risk if they choose your contract in a multi-offer situation. A great price and great terms will help here. Having an agent who can represent that your home is (will be) properly presented and properly priced to sell quickly will also help.