Buy First or Sell First?
The question arises, Is it better to Buy First or Sell First? Here is David’s experience with 3 clients.
Client A has an average bank account and after looking at a number of re-sale condos, recognize that moving to a brand new home is their preference. For Client A, it was BUY FIRST in an under construction development and then put their house up for sale. When the house did not sell in time to pay for the new condo, they took out short term financing to pay for the new home, to bridge them to the completion of the sale of their house.
Client B has a large bank account and spent a year looking for the perfect next home and probably last home. When they found it, it was BUY FIRST and they quickly moved in. They paid for the new home with a combination of savings and taking out a line of credit. Then they placed their house on the market. When the house sold, they paid off the line of credit.
Client C has a modest bank account, did not have a preference and was not sure what or where to buy. Therefore at the same time that the house was on the market, they started a search for the next home. A new home was found and negotiations to buy started. Lack of activity on the current listing forced them to negotiate low on the new home to ensure that they would have sufficient funds to pay for it. As result of not being successful, they realize that they must SELL FIRST. After the house was sold, they knew exactly what funds would be available for their next home.
Three clients, three approaches. David can discuss your specific situation and establish a process to best fit your needs and preference.