I am often asked, "should I list my home before I find something to buy?" I know it is kind of a chicken and egg scenario. I feel Vendors should take a leap of faith that the property they want will be available when they have sold their home. Here are some reasons I feel you should list before you buy, especially early in the year:
- If we find the right property but can't buy it because we have to sell the vendor's property then we will be disappointed to lose the opportunity.
- If we find a property but make our offer conditional on the sale of the buyer's home we lose bargaining power in the negotiation
- In the reverse, if we sell first, we can offer to buy with few conditions and therefore negotiate a better purchase price
- If we list a property now we can negotiate for a longer closing on a sale to allow time to find the right property
- If we list now we can see what the market is like and make sure we can sell this year, for a good price
- If we conditionally buy first and then try to sell, we might be tempted to take a low offer just to be sure the home is sold and we can secure the new home
- There are not many competing listings, early in the year, so hopefully less days on market for the vendor and high competition for the home
- Less risk of getting into the undesirable situation of owning 2 homes
Listing and buying are exciting events but it can also be a stressful time. I feel listing first is a good step to alleviating some of that stress and should add to the overall excitement!