{"id":701,"date":"2019-07-26T19:47:00","date_gmt":"2019-07-26T19:47:00","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2019\/07\/26\/6-ways-to-help-prospects-decide-which-comes-first-buying-or-selling\/"},"modified":"2025-03-13T02:07:02","modified_gmt":"2025-03-13T02:07:02","slug":"6-ways-to-help-prospects-decide-which-comes-first-buying-or-selling","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2019\/07\/26\/6-ways-to-help-prospects-decide-which-comes-first-buying-or-selling\/","title":{"rendered":"6 Ways to Help Prospects Decide Which Comes First Buying or Selling?"},"content":{"rendered":"

 <\/p>\n

<\/p>\n

If you\u2019ve been working as an agent for any length of time, a client has likely asked whether it\u2019s better to sell a home before buying a new one, or the other way around. Though rising interest<\/a> rates may encourage buyers to purchase a new home before selling their old one, in reality, the answer to this question varies drastically from client to client, depending on their lifestyle and financial situation.<\/p>\n

The addition of iBuyers, which are companies that buy homes directly from homeowners, have also muddied the waters by offering fast, all-cash offers that can be enticing to sellers looking for quick transactions. Here are some things to keep in mind while you help your clients determine which buying and selling strategy is the best fit.<\/p>\n

The pros and cons of selling before buying<\/h1>\n
    \n
  1. Easier budgeting<\/strong><\/li>\n<\/ol>\n

    The best argument for selling before buying is that it leads to easier budgeting. Since the sellers will have already paid off their mortgage by the time they\u2019re ready to buy, they\u2019ll know exactly how much they can afford<\/a> to spend on a new home. This may be the best strategy for clients who will need to use the money from their home sale in order to purchase something new, especially if they\u2019re on a tight budget.<\/p>\n

    iBuyers like Opendoor and Offerpad can speed up the process by using algorithms to generate offers that reflect the home\u2019s fair market value, drastically cutting down on the time it takes to negotiate a sale. However, traditional agents<\/a> contend that the offer may be on the lower end of fair market value, meaning that sellers can potentially be leaving money on the table, especially in competitive markets.<\/p>\n

    2. Stronger negotiating position<\/strong><\/p>\n

    If buyers do decide to go the traditional route, selling their home before buying something new also puts them in a stronger negotiating position once they\u2019re ready to make an offer. Since they\u2019ll already have the money from their sale in hand, they won\u2019t need to include a home sale contingency in their offer, making it a more attractive option for sellers.<\/p>\n

    3. The need for temporary housing<\/strong><\/p>\n

    However, the downside of selling before buying is that unless your clients are able to make both their buying and selling transaction timelines line up, they will have to find temporary housing while they\u2019re waiting to settle on their new home. This, of course, is an added cost that will have to be considered. Along with that, they may also have to factor in the cost of storing their belongings.<\/p>\n

    This is one advantage that iBuyers have over traditional real estate practices. These companies often offer sellers the chance to select their own moving timeline<\/a>, which allows them the freedom of only having to move once.<\/p>\n

    The pros and cons of buying before selling<\/h1>\n
      \n
    1. More time to find a home<\/strong><\/li>\n<\/ol>\n

      Having to live in temporary housing can add stress to the homebuying process. Buyers can feel pressured to put an offer in on a home just so they have somewhere to settle down, even if it\u2019s not an ideal fit for their needs. When clients buy before they sell, they don\u2019t have this issue. Since their home won\u2019t go on the market until they\u2019re ready, they can take as much time finding a home as they need.<\/p>\n

      2. Only having to move once<\/strong><\/p>\n

      The other advantage of buying before selling is that your clients will only have to move one time (instead of to and from temporary housing). Plus, as soon as they\u2019ve closed on their new home, they can make the transition at any time. This may be a selling point for clients that have young children or pets and may have difficulty orchestrating the move to and from temporary housing.<\/p>\n

      3. Financially managing two homes<\/strong><\/p>\n

      A big disadvantage to buying before selling is that your client could run the risk of having to financially manage two homes while they wait to find a buyer. iBuyers can speed up that process because they don\u2019t include the often lengthy mortgage underwriting process. And they\u2019re becoming more and more common\u2014Zillow\u2019s iBuying program, for example, is expected to reach nine markets<\/a> by the end of 2019 including areas like Texas, North Carolina, and California.<\/p>\n

      Speeding up the selling process can help your client save significantly. Mortgage payments, utilities and home insurance for two separate houses add up fast and can put a major strain on your client\u2019s finances. Make sure your clients are aware of the financial implications of carrying two properties and that they\u2019re prepared to shoulder the cost.<\/p>\n

      The bottom line<\/h1>\n

      At the end of the day, it\u2019s up to the client to decide which move better suits their needs. But with the help of the pros and cons above, you can guide your clients to a decision that works best for them.<\/p>\n

      About the Author<\/h5>\n

      \"\"Maxime Croll is an insurance expert and Product Manager at ValuePenguin. Educating and assisting shoppers about financial products is her focus and passion. She has been featured on Newsmax, ThriveGlobal and Forbes Business Development Council.<\/p>\n","protected":false},"excerpt":{"rendered":"

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