Waiting to list before finding your dream home leads to rushed decisions.
Can you still remember the challenge of buying your first home? You scraped together the down payment, found something affordable, and likely competed with other buyers. It was no walk in the park, and when you’re already a homeowner, buying another house can feel even more stressful. Many homeowners face the challenge of needing to sell before buying their next home, adding complexity to the process and causing anxiety.
We’ve put together five common concerns homeowners face when selling before buying, along with practical tips to address these challenges. If you’re a Realtor, these strategies are perfect to share with potential sellers to ease their worries and boost their confidence.
What if I don’t find a house I want to buy? One of the biggest challenges and concerns when selling before buying is the fear that you won’t find a home you like, and that’s totally valid. However, holding off on listing your home until your dream home hits the market isn’t the best strategy. Doing that can lead to a very rushed decision. You might lose money on the sale of your current home, or the home you’ve been eyeing could get snatched up quickly before you’re ready to make an offer.
Smarter move: Work with your agent to review current sales data. This will help determine if the type of home you’re looking for is regularly available in your price range. If there are usually a few homes that fit the bill, you’ll likely be in a great position to find the one you love once your current home is under contract.
“By planning ahead, you’ll have choices that will best suit your situation.”
What if the specific house I want to buy sells before mine does?
Falling in love with a new house before listing can lead to unnecessary stress, potential financial loss, and emotional devastation. Many still list their homes, hoping for a quick sale to buy the next one.
Smarter move: Price your home aggressively to increase your chances of getting under contract quickly. You might also consider making an offer on your dream home contingent on selling your current one. While it’s worth trying, don’t be surprised if many home sellers refuse to accept these terms.
If a house has been on the market for quite some time, a seller may be more eager to accept a contingent offer. Sometimes, looking into financing that can help bridge the gap while you sell your home quickly at an acceptable price is a good option.
What if I get stuck with two mortgages?
This is a totally valid concern. While some may manage to pay for two mortgages for a short time, let’s be honest: even if you can, it’s best to avoid it.
Smarter move: Don’t commit to buying a new home until your current home is under contract and all contingencies are met. For extra peace of mind, include specific clauses or provisions in your contract, making your purchase contingent on the successful closing of your home. It’s a smart way to protect yourself and keep things running smoothly, as long as the market and the house you’re interested in will allow you to do so.
What if I sell too soon and the market changes on me?
Sellers often worry that after selling, the market will rise, making their home worth much more. However, this rarely happens; the real estate market is generally less volatile than the stock market. While your home could be worth more down the road, waiting a few weeks or months will not likely bring you a massive increase in value. Remember, the opposite could also happen—the market could drop. If you wait, that’s more likely than not.
Smarter move: Focus on your home’s current value and avoid trying to time the market. Make your decision based on what’s happening today, not on what might happen tomorrow. In a contingency sale, you must act quickly, which usually means having your price on point to move swiftly so you’re not wasting time sitting on the market.
What if I sell my house and have nowhere to live?
In over 20 years, I’ve never had anyone go homeless. If you’ve sold your house, you have many options. By planning ahead, you’ll have choices that will best suit your situation.
Smarter move: Don’t wait until the last few weeks and then wonder, “Where am I going to live?” You usually need to think ahead about where you’re willing to stay. Consider short-term rentals if you don’t plan on staying for longer than six months to a year, or you could stay as long as you need until you find the right property to buy.
Alternatively, you could live with a friend or family member. Depending on the market, you might even negotiate a rent-back option after closing. There are options, and this is something you need to plan for upfront because often, you’re not going to perfectly time the market to find the ideal house while selling your own.
If you need help buying or selling a home, we can help. Reach out at (503) 804-1466 or Anne@SellingPortlandHomes.com. We’re here to make your move easier.
