House Purchase question (opinions wanted)

[leftwing]

So I have started the process of looking for a new house - upgrading from my current situation - and am going to be listing my place next week. I have found a place that I really like as it checks off a lot of boxes on my list, but my Realtor has advised against putting in an offer until my place sells.
If I did put an offer on this listing if would include the condition "upon sale on my current house". From my understanding this condition comes with a '48 hour clause' meaning that even though my offer is a accepted the house stays on the market and the owner can accept another offer, in which I will have 48 hours to meet all my conditions (sell my house) or my offer become invalid.

My question is basically: Ideally, would you rather have your house sold first then begin looking for your new house and put an offer in AFTER you have agreed to sell your house?

OR

Would you rather agree to purchase a new home then work on selling your current home?

What do you think is a typical scenario if it is different than your ideal scenario?

My Realtor says the reason that he advises against putting an offer in before the sale of my current place is that I will become invested in the home and it will feel like mine, then there is a good chance the deal will fall through if I can't sell my place. He also says that if I have a deadline to sell my house I am more likely to take a lowball, or lower offer than i would otherwise take. I don't see any harm in putting an offer in and I don't know why my realtor advises against it. Am I missing something?

My opinion is that if I don't make an offer than I don't have any chance to own the house. If I do make an offer and it falls through I will move on.

My opinion is also that If I sell first then I have a timeline to buy a new house and may compromise on things that I otherwise would have not. Which would affect me for the whole time I live there, which I plan to be 5-10 years. If I put an offer first and lose the home I am ok with that because I understand the circumstances. If I have to make a tough decision (low offer) on the sale of my place in order to satisfy my conditions to buy the new place I will have to decide when that time comes. I am ok with that.

I know the easy response would be "Find a Realtor that does what you want" and I know I can do that. I am looking for opinions as I am curious about your opinions. Hopefully some of the resident realtors chime in!

[03ozwhip]

well I've been in your exact situation multiple times on both sides. put the offer in subject to the sale of your home, you'll regret it if it's the one you want, trust me.

if you're ok with the variables, just do what you want to do. the realtor is supposed to have your back in any case, but he seems to have an alternative motive to it, maybe just waiting so long for conditions bla bla bla who knows, in any case, do it.

[Darkane]

Sounds like you're impulse buying this house.

Honest to god, why even start looking unless you were ready? If you're okay with risk and can, carry both for a few months.

[03ozwhip]

Originally posted by Darkane
Sounds like you're impulse buying this house.

Honest to god, why even start looking unless you were ready? If you're okay with risk and can, carry both for a few months.

doesn't sound at all like that to me. plus he won't be carrying both for months. it's buying with the condition that his sells within an agreed upon timeline.

if it doesn't sell, conditions aren't met and he doesn't get the other house.

[leftwing]

Originally posted by Darkane
Sounds like you're impulse buying this house.

Honest to god, why even start looking unless you were ready? If you're okay with risk and can, carry both for a few months.

Yeah definitely not impulse buying. What makes you think that? We have been to many open houses and seen a bunch more with private showings by listing agent. I follow MLS religiously so I have a pretty good idea of what is out there as well. This house checks off a bunch of boxes on our list, more than any house we have seen so far. I know there will be more houses like this out there, possibly even better, but the idea of selling my place and then having 30, 60 or 90 days to find that house seems daunting.

What your opinion? Have you been in this scenario? I assume by your response you have always sold your house first then went looking for your next one?

[Darkane]

Originally posted by leftwing


Yeah definitely not impulse buying. What makes you think that? We have been to many open houses and seen a bunch more with private showings by listing agent. I follow MLS religiously so I have a pretty good idea of what is out there as well. This house checks off a bunch of boxes on our list, more than any house we have seen so far. I know there will be more houses like this out there, possibly even better, but the idea of selling my place and then having 30, 60 or 90 days to find that house seems daunting.

What your opinion? Have you been in this scenario? I assume by your response you have always sold your house first then went looking for your next one?

When I purchased my current I was in a position to lay down a nice down payment and could swing both mortgages. Once all was settled I sold my other place without the lingering burden of conditions.

My situation was different. In my opinion, can you sell and then either rent or move in with parents/in laws for a few months?

[max_boost]

it just depends

I bought my condo before my house sold and it was a bit stressful cuz money got tight for me. However once the house sold I was budget baller again

[Sugarphreak]

...

[max_boost]

^^^ I didn't wanna buzzkill OP but I amen SP.

[spikerS]

Your realtor is doing exactly what he is supposed to be doing in this scenario.

In this market, houses are selling, but it is taking A LOT longer. Buyers are holding off and looking to scoop up good deals. If you want to sell fast, you are going to be pricing it lower, and you are more likely to accept a lowball offer knowing the new house is waiting for you to waive conditions.

On the flip side, it will strengthen the position of the owner of the house you want to buy. Someone sitting on the fence about it that has not made an offer, may be spurred to make one now that you have an open offer on it.

Honestly, your realtor is right on this one. If you are serious about moving, sell your place first, THEN make your offer, it will put you in a stronger position when buying.

my $0.02

[calgary350z]

I was just in the same boat and Jordan sold my house in basically 4 days. I found the house that we were looking for over the course of around 6 months and then made a an offer with conditions of finance that gave me a bit of time to feel out the market on my house.

I could have backed out if things were dead in terms of interest but it all worked out really well.

[gwill]

If your not listening to your realtor youve hired the wrong one. This is what they do for a living. Why take advice from people here when youve hired someone for significant $$$ to handle this exact problem for you.

Let me guess.. you know better.. you dont trust this realtor... so why did you hire them?

[403ep3]

My situation was a bit different, but I ended up building and listed my place 2-3 months before the possession of the new place. Had a hard time selling my place (+60 days) and ended having to take less than what I was hoping for. I'd say gauge interest on your current place and go from there. There are a ton of houses on sale and it's a buyers market. Take your time unless you can juggle two mortgages.

[dirtsniffer]

Originally posted by Sugarphreak
Right now I am rejecting all offers on my place with "upon sale of current house" regardless of what it is. Maybe if the market was moving... but right now it is a major pain to sell. I am not wasting my time negotiating with somebody who isn't able to buy.

You can always accept the offer and then accept a better one down the road right?

We're in the process of listing our place and definitely going to have it conditional on the sale of ours. why wait until ours sell to put an offer? Probably won't rush on spending the $500 on an inspection though.

[ExtraSlow]

Depends a lot on your situation. If you are single, or just a couple with no kids, you have a lot more flexibility.

If you are pretty maxxed out, and have a bunch of kids, then it's very awkward to end up owning two houses in a slow market.

I think a lot of sellers are thinking just like SP as well. Conditional offers are a hassle, and don't actually work out that often in this market, so they better be for a significant amount more money to make it even worthwhile. You essentially loose all your bargaining power.

All that being said, if this place is your dream home, just buy it without that condition, and just make everything else work. See if you can get an offer in that's $30k low, and then sell your current place for 30K less, and it'll move much faster. Lots of houses are selling in this market if they are low enough.

[jwslam]

I haven't been through a buy & sell yet, but I know when the time comes I would make sure I've cushioned myself for at least 6 months of carrying both houses where I'd buy first and sell after.

[HiTempguy1]

Your house is PROBABLY not going to sell in a week in this market If you haven't even listed yet, it sounds like a bad idea.

[Kloubek]

I might be wrong, but I think that in a slower market like we are experiencing, a seller might be more inclined to accept a conditional offer like that since they might feel their house isn't going to sell anyway. But this would only depend on the owner's desperation or attitude towards it, and I'm sure many would still not accept such an offer. Back in the not too distance past, a condition like this would exempt you from making a purchase, but I believe perhaps there is a bit of leeway these days.

I am currently building a house, and do not intend on putting mine on the market until we take possession. We can afford to hold both for a little bit if required, and I currently have a tenant in our basement who makes up half of our current mortgage anyway. I will admit though, the possibility of our current house not selling in this market is a concern. If I couldn't afford to make up the difference short-term, then I wouldn't be handling it this way.

So I guess my own answer to your question is, first, to listen to your Realtor because I think he's right, but also to know whether you have the finances and/or desire to hold onto your old property for as long as it takes to sell. The first approach (selling first) is certainly the most ideal from a financial/safety perspective, and I believe that is what most people do for that very reason.

With that said, the one major downside is that you need to find a place to live in the meantime. This can be a real pain if you have lots of stuff to move and/or a family.

[danno]

Originally posted by Sugarphreak
Right now I am rejecting all offers on my place with "upon sale of current house" regardless of what it is. Maybe if the market was moving... but right now it is a major pain to sell. I am not wasting my time negotiating with somebody who isn't able to buy.

Sorry why wouldn't you accept a offer and if a better one comes accept that one too and the first offer has the right to pass on their conditions if they do then your house is sold, if they don't you accept the other offer and your house is sold. I don't understand the problem.

I tried negotiating with someone with the same idea and we had to walk away. We are waiting for the perfect house in a specific community and might be waiting a few months or years for it. I have 2 little kids and can't be making multiple moves.

[JordanLotoski]

Might of missed this but where is your current home and where is the new home you want to purchase?