Q & A: Should I find another property before I list mine for sale? : "My Steamboat Connection" Real Estate Blog

"My Steamboat Connection" Real Estate Blog

Q & A: Should I find another property before I list mine for sale?

Q: Should I wait to find a property before I put mine up for sale?

A: Probably not. It is common to fear you might sell your home before you find a suitable one to replace it. However- this very rarely happens and unless you are looking for a unique property, this will probably end up costing you thousands of dollars. Let's say for instance you find the right property this Sunday at an open house- this is the house- you have to own it. Let's also assume that the seller is asking $175,000 for the house. You probably want to try to negotiate the price downward a little. Well- now you have two jobs. You need to talk him down off his price- but you also need to convince him to take his home off the market and risk not selling it, while you put your home on the market, find a buyer, qualify him and get it closed. Your seller will probably agree to wait a couple of months- but he'll more than likely want you to pay full price for his home. So now, you're out a $5,250 price reduction (going by the 3% national average) but in order to sell your home in two months you now need to get aggressive and price your home for a short sale. Let's say your home is worth $100,000, and to get it sold in two months, you probably need to sell it for $94,000 (going by the national average of 6 months to sell).

In this situation, waiting to list your home cost you $11,250 dollars. This is what finding a property before putting yours on the market could cost you.