The process of buying real estate, any real estate, IS STRESSFUL. Be prepared. People in general bring an emotional component to real estate they might not attach to anything else in their life. This is especially true when buying or selling a home. We\'ve all heard, "home is where the heart is", "a man’s home is his castle". We all get "attached" to our homes. Our home is a reflection of who we are as well as our "safe-house". It\'s no surprise that we get a little protective when Buyers point out the flaws in the homes we\'re selling and, conversely, excited at the prospect of finding a new "castle". Realtors are so aware of this that many Realtors won\'t even list their own homes.
Hopefully knowing this in advance will help you keep the stress levels in check at critical times throughout the course of your transaction.
You\'ve decided you want to buy. It probably started out harmlessly enough, looking over the classifieds, maybe picking up one of those home booklets. STOP! You\'re skipping straight to the fun part.
The first thing you need to do is to start considering some realities.
Do you have to sell your own home to buy?
Are you renting or leasing? If so, when does you\'re lease expire?
The absolute best buying position (strongest negotiating position) you can put yourself into is to buy at your own leisure.
Let me explain;
If you have to sell your own home to buy, then the purchasing of your new home will be contingent upon the successful sale and closing of your current home. This may sound like a logistical nightmare but it is done all the time.
The problem is you are potentially in the weakest negotiating position possible; the potential weakness being how strongly you want that new home, and, conversely your strength being how willing you are to lose it.
Some examples;
You love that new house, you\'ve locked in great financing terms, you\'ve paid for a home inspection, termite inspection and survey, and all is going well. Now the buyer of your current home sends you the results of their inspections and demands compensation for every little thing their inspector found. Meanwhile the clock is ticking. The sellers of the new home are probably still marketing their home. If you say no to the demands the new house is gone, as are the great financing terms and the money for the inspections.
Another example:
In this example you still love that new house and the financing and you\'ve paid for all the inspections. The buyer of your current home isn\'t asking for anything based on their inspection. Your inspection however has turned up a load of problems and the sellers aren\'t willing to do anything. Backing out on the buyer of your home will probably cost you thousands, going through with the sale leaves you homeless. Do you give in to the sellers?
This is what I meant about stressful.
The potential problems aren\'t nearly as great for renters if they are willing to lose a few months rent. That is, if they don\'t allow themselves to be backed "into a corner" trying to "time" the closing date with the last day of their lease.
So the question is how to avoid those problems.
The ideal solution is to not tie together the two transactions.
For those with the financial means this may be purchasing without the "successful sale and close of primary residence" contingency and then selling at your leisure.
Another option might be a lease back arrangement with the buyer of your home, giving you the time to shop and negotiate from a position of strength. Remembering the downside I mentioned above of being prepared to lose a few months rent.
Still another option is to make an in between move into a lease situation, and then shop around.
The answer that is right for you will depend on your specific situation.