The Chicken Or The Egg

Once you find that house you want to call your new home, do you put the one you're living in now on the market OR do you list your home and sell it before you start looking?  Is it the egg before the chicken or the chicken before the egg?

It doesn't matter if you're looking to downsize, accommodate a growing family, looking for a different location or hoping to cut your housing expenses.  The first thing you need to do is make sure you qualify for a new mortgage because federal regulations and guidelines have changed dramatically and bank standards have become more restrictive.  Then, go online and see if what you're looking for even exists.  You truly want to have the option of choices before you go through the process of putting your house on the market. 


It's very easy to get caught up in a Catch 22 situation.  You may find the home of your dreams but, you haven't listed the one you occupy now yet and you need to sell it before you take on a new mortgage. 

You don't want to miss buying the perfect home either because someone may beat you to the punch.  You also don't want to get caught having nowhere to go if your house sells quickly and you haven't found the home of your dreams either.  Can you pull off a balancing act so both transactions happen together? 

In the not too distant past, buyers were falling over each other to outbid the competition and purchase everything that came up for sale.  It was definitely a "Seller's Market."  Say good bye to then and hello to days of listings taking possibly 80 ~ 100 days before a SOLD sign is gracing a lawn.
 
So, what's the solution?   A Contingency Clause can be added to your offer of purchase.  If the seller agrees, an addendum to the sales contract can be drawn up stating your purchase of their property will be contingent upon the sale of your property within a stated period of time.  The downside is that the Sellers can still continue to market their home and should a legitimate offer come in, you are given the option of removing the contingency (usually within 1-3 days) and proceeding with the purchase.

Never say never.  In today's environment, a Contingency Clause could actually prove the "save all" in this type of situation.  Seller's will know you'll be more motivated to negotiate a sales price on your listed home while they still have the opportunity to receive other offers.