Tuesday, November 5, 2019 / by Gianfranco
Should I sell my house first? Or should I buy first? WHAT SHOULD I DO???
We're going to talk to you today about one of the biggest real estate dilemmas and we call it the real estate catch 22.
It's always something that comes up every single time. I meet a seller, I talk to a seller. The real estate catch 22 is buying a house and not being able to sell your house in a timely manner, or worse off, selling your house and not being able to find a house in a timely manner. So, the real estate catch 22, having two homes or none at all. 80 percent of the buyers who are looking to buy a house, they have a house to sell. So, a lot of them are stuck in this dilemma. Should I buy first? Should I sell first?
Well, usually in a market where it's a little bit more stable or more of a buyer's market, buyers tend to want to lean towards selling first, and in a fast-paced market, seller's market, buyers are not worried about getting their home sold, so they're going out there and buying a house first. Regardless, some people get stuck in this situation, in this web, and they get stuck, and they're either forced to sell their home for cheaper or usually they end up selling their home for much cheaper. Why? Because they already bought a house. And they don't want to get stuck with two mortgages. And I always tell every seller, you know regardless of the market, because you just never know what could happen, and for the protection of the seller, if I know that the equity or the money that they're going to put in their new home is going to come from this house that they have to sell, I always advise them to sell their home first.
And this should be advice that's across the board for every seller. If you need the equity from your property to put into the new one, then you need to sell your house, because you don't want to be stuck in a situation where you have two mortgages. You may find a house and get excited about it, and the agent is encouraging you to put an offer, and not really thinking about, "okay, what happens if I don't sell my house on time?" Or, "what happens if I don't sell it on time and now I'm forced to drop the price dramatically so I don't get stuck with two houses."
So, don't put yourself in that situation. Make sure you research, explore all your different options. You can have a bridge loan and you can have a port mortgage. Talk to your bank if you have a relationship or your mortgage broker, and they'll find a solution before you go out there and do this. Make sure you've done your due diligence before you go out and put a deposit and buy a property. The best option is to put your property up for sale, have buyers come through it, while simultaneously you're looking at houses and seeing what's out there. So, when you get an offer on your house, first of all you're negotiating for both transactions from a position of strength, because you're selling your home first, knowing that you don't have to sell it on a certain day or anything, because you haven't bought yet.
And on the buying side, usually you'll have much more flexibility to match the days. So, if you like this seller secret or if you have any other questions, this is a big topic. You may have heard us talk about this in other videos or articles, our solution to this big problem is our guaranteed sell program, where we guarantee to sell your home or we'll buy it. And if you have any questions and want to talk about that, give us a call at 647-977-9752 and we'll be happy to answer any questions you have.
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Watch the full video here: https://youtu.be/SDtCRkRjfLM