Should I Sell and then Buy or Should I Buy and then Sell?

There’s no ‘right’ way: buy and then scramble to sell your home in order to pay for your new place, or do the opposite – sell first and then scramble to find a place to buy and get moved in time for your buyer to move in to your old home.

Some people are more comfortable knowing where they are going – having their destination set before they pull up stakes. Others don’t even want to look at new possibilities until they know their condo or house is sold and exactly how much money they will have to spend on their new place. Only you can do the soul searching necessary to decide on what will be best for you.

Based on your decision, we can offer suggestions and help you plan – either way. We will go over all of your options, plan a course of action, and we will coach you through the process. You are the ultimate decision maker and whichever way you choose to proceed we will support that decision and make the process as easy as possible – protecting you along the way.

SELL FIRST
THEN BUY

When you list your condominium for sale, it is important to know the asking and recent selling prices of other condos in your building. If a buyer is looking for a two-bedroom condominium in Los Angeles in a certain area or building, their agent will schedule appointments for them to see every available two-bedroom condo in the building.

The buyer will compare certain features in each unit, such as the view, the floor plan, the condition of the unit and its asking price. If you have priced your unit in comparison to the other available units and taken into consideration the comparable sales for the building, and if yours is the best asking price for the condition and view, your condominium should still sell quickly in today’s market.

Once your unit has sold and is in escrow, the buyer will then begin their due diligence period. If your agent has done their job, the buyer will receive everything they need to know about the building within the first few days of the transaction. You can then go and look at condos (or houses) to buy. Or you can wait until the buyer has signed off on everything and your transaction is what would be considered “contingency free.”

If you decide to make an offer on a new condo before the buyer has approved all the contingencies, it is important to consider the contingency dates of your sale transaction. Most sellers do not want to take “contingent deals,” but a good agent should be able to line up the contingency dates in a way that protects your ability to cancel your new transaction.

For example, let’s say on your sale you have negotiated a 7-day inspection period with your new buyer and 10 days for the loan and appraisal contingencies. You could write an offer on a new condo or house and ask that seller to give you 10 days on your inspection contingency and 14 days for your loan and appraisal contingencies. If your buyer cancels your escrow during the 7-day inspection period, you can cancel your purchase for no reason at all up to 10 days from acceptance of your offer on the new property. That way, you are protected.

BUY FIRST THEN SELL

You decide you need to know where you are going first. We speak to a mortgage broker and go over your options of getting a home equity line so that you have the cash on hand to buy a place and then sell without a lot of pressure.

Or we decide that your condo or house is highly desirable and will sell quickly if priced right. We look at other homes in that price range and I enlist the help of agents in my office to make sure your selling price is on target.

We look at a selection of condos or houses and you fall in love with one of them and tell me you have to have it. We write an offer for you and negotiate the longest escrow period possible. The seller is planning on buying something else and the best we can do is get you a 45-day escrow. That means we need to sell your existing property quickly.

In the buy-first scenario, the asking price and marketing of your existing property is critical. You really have to sell in order to pay for your new property. The buyers that will be exposed to your house or condo must be satisfied that your property is priced right and of great value before they actually write an offer.

If you slightly under-price the property you might be able to get multiple offers and then would be in a position to choose the best offer and possibly put another offer in back-up position.

We would work together – daily – to get your property sold. We would go over the pending and sale comparable figures and realistically look at the condition of your home or condo. We would prepare the property for sale and follow many of the tips I have included in my free report, “Preparing your Condo for Sale.”

Marketing a condo is not the same as marketing a house. Some Los Angeles condominium buildings do not allow open houses and broker’s caravans. You need a real estate agent that knows how to market and sell an LA condominium in today’s marketplace.

I would be responsible for administering a blitz of advertising so that every potential buyer that was looking for a condominium of your type in Los Angeles knew that yours was on the market. We determine together whether you want to look at offers as they come in or whether you want to set a date to look at offers, taking into consideration that we have contingency dates to meet on your new property.

Once you get an offer, the contingency dates need to be short enough to enable you to know that you have a solid deal. Some sellers negotiate a 30-day escrow that includes a two-week lease-back period. That way you have the money to fund your condo purchase and your buyer would become your “landlord” for the two weeks between your 30-day sale and your 45-day purchase. The terms of this short-term lease are negotiated with the offer.

I have been through this process countless times. Somehow or other it always works out…you find the condo of your dreams and the perfect buyer comes along and purchases your property. At times it can be stressful and that is part of the process. But having the benefit of an experienced real estate agent or “coach” can make all the difference in the world.

Call us to discuss the process and let’s figure out what will work best for you. Contact us today at Info@LACondoLifestyles.com or 310-278-6033.

Some areas of interest on my site for those interested in Buying or Selling in the Greater LA area: