Real Estate Advice
Buy First, or Sell First?
Dear Pat,
We plan to move this spring, since our family is growing. We thought
we’d like to find the right house before we sell, but we don’t want to
get stuck with two payments if our house doesn’t sell right away. And
we definitely don’t want to be under pressure to find the right house
if we’ve already sold ours. What to do?
---Beginning to Worry |
Dear Worried,
Relax. I hear your question just about every time I do a market
analysis for homeowners, and I can reassure them that, although every
situation is unique, the best approach is usually readily apparent.
Let’s begin with a look at different markets: in slower times such as
the 1980’s, it often took 30 days or more to sell prime houses, so
clients were understandably reluctant to buy their next home and hope
for a quick sale of their own home. In those days we often counseled
clients to sell first, with an extended closing date of 90 days or
more, to allow them time to find and close their next home.
As we all know, times have changed. I can’t speak with any authority
on the suburbs, where market times are much longer, but in South
Minneapolis sellers generally can afford to take their time in
selecting their next home, and then count on the fast market to sell
their own home in plenty of time to coordinate closings. As a
seller/buyer, you would try to negotiate an extended close on the home
you’re buying, say 60-90 days, to give you time to sell. Of course,
over the years I’ve had many calls from panicked seller/buyers who
bought too soon, before their own house was ready for market. My
dog-eared Rolodex has saved the bacon of many of them, as we
frantically tracked down workpeople for last-minute repairs and
renovations. I’ve seen both sides wrap up within a month, when
conditions were ideal: great house, hot market, cooperative principals
and Realtors, competent lender and title company. But it’s no fun—and
downright impossible if you can’t get ready for market within a few
days. |
So here it is in a nutshell,
Worried—if you want to avoid worry, have your
house completely ready to sell before you start
looking, even if you just want to peek at a few
open houses. Best to select your listing agent,
and get her (no gender bias here!) involved in
your timetable before you start looking. If that
perfect house shows up on the first day, and the
seller gives you only 30 days to close, you won’t
have time to paint your porch, let alone remodel
the bathroom.
Of course there are situations where “buy first”
is the wrong approach, notably when it’s obvious
that your home would linger on the market—say, an
unusual layout or hard-to-sell location. And there
are times when it’s best to own both homes for a
few months; perhaps to allow for a major project
on the next home, or to repair and effectively
stage the home you’re selling. Again, get a real
estate pro involved early on, before you start
looking, to help you make the right decisions.
Good luck!
|
Pat
Rosaves is a full-time real estate
professional living in the Seward -
Longfellow area. She has more than 28
years experience in helping people with
their real estate needs. Questions may be
sent to her at River Realty, 2543 38th
Avenue South, Mpls, MN 55406. Or call her
at 612-724-1314 or email her at Pat@RiverRealty.net |
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