REAL ESTATE 101 - Coach's CompassSTAN PENNY is considered, by many, to be one of real estate's most respected ambassadors and trainers. His broad and extensive knowledge of the industry has been acquired from a number of different positions that he has held, working with both Brokers and their Agents.
1) Do I sell first or buy first? Since first time home buyers represent only a small portion of the market, it is most likely that when you look for a home you will also have a home to sell. So which comes first, the chicken or the egg?! Since a home represents not only shelter but also security, there is a natural fear of putting your home up for sale before you have assurance you have another home waiting for you - even if it is temporary accommodation. Most often, people place their home on the market with a REALTOR® and immediately start their search for their next home. This is an exciting experience being both a buyer and seller at the same time, as you face the emotions experienced by both sides of a real estate transaction. In the event your home sells before you find a new home you will probably have a conditional purchase dependent on you, "the buyer" finding a suitable home by a particular date. If the condition is not met your sale will collapse. On the other hand, if you find a home fist your purchase agreement will likely have a condition stating "subject to the purchaser entering a binding agreement or sale by a particular date. If not, the purchase will collapse. Either scenario presents problems and traumas of their own. They can only be avoided arranging "interim financing" or having sufficient funds to complete a purchase without selling first, but you do face the possibility of owning not one, buy two homes! Finding a home first is the course most often followed. However it does present problems. First of all, you are making a purchase before you know how much money you will have! What will happen if your existing home sells for less than you expected. Secondly, you may be fortunate enough to find your dream home and emotionally you move into your new home and separate yourself from the old home. You may then face the shattering experience of being bounced by a more ready buyer and you now have to return to your old home and re-kindle your love! However, neither of these 2 scenarios have the same impact as a conditional offer has you see, when you can make an offer that does not include a "subject to sale" clause, you can usually negotiate a much better price. By contrast, if it does have this condition, do not be surprised if it is countered back at full price! Members of the Most Referred Real Estate Agent's network have been pre-qualified in order to provide the best possible service to real estate buyers and sellers. They have a history of making the buying and selling experience a positive one! This information is intended as a guide for those interested in finding a real estate agent to assist them with the purchase or sale of a home. It is not intended to solicit services from those who have already signed listing agreements with a licensed Realtor or to act as legal advice. It is always best to take your questions to a licensed real estate professional in your local area. Find respected agents in your area at mostreferred.com. Most Referred Real Estate Agents® and REALTOR® are registered trademarks of their respective companies.
|
