Should you sell your existing house first or wait to find a more suitable property before listing your home for sale

Homeowners that find their present home does not meet all of their needs or wants will often consider buying a new home. Occasionally, these buyers are unhappy enough with their present home and/or feel that there is ample selection of the type of home that they desire that they will sell their existing home first before looking for a replacement home. The advantage of this strategy is that they are in a better bargaining position both when they go to sell their home and when they go to purchase their new home. As well, they know exactly how much they can afford for their new home. The risks is that they can't find a suitable home in the desired time frame and price range and are forced to look at other options such as renting.

However, quite often these buyers will want to locate a new home first before selling their present home. Most of the time, they will want to make an offer immediately to guarantee that they can purchase the replacement home. The advantage of this strategy is that they don't have to move until they have found a suitable replacement. The disadvantage is that they will not be in a good bargaining position when they go to sell their home as they will either have to or at the least very much want to sell their hoome. The option exists to make their purchase offer subject to the sale of their existing home. However, this type of offer is not as attractive to the seller. So the first drawback of making this type of offer is that the seller, all things being equal, will expect more money. The second is that it is standard practice for the seller to insert a clause that requires the buyer to remove their condition within a set time frame (24 to 72 hours typically) if the seller receives another offer. The seller is more likely to accept an offer without this condition, however, the buyer will fact the risk that the property does not sell as quickly as expected or that the property sells for much less than expected.