Options For Selling Your Home When it Will Be a "Schedule A"

Ok, so, you've met with your mortgage specialist and determined in order to buy your next home you MUST make your offer conditional on selling your current home. (I.e., you cannot carry the two mortgages at the same time, even if it is for a short period of time).

If you've been following me for any amount of time, you'll have heard me say, "Your sale is the anchor that is holding you back." By that I mean... having an offer subject to the sale of your home is going to put your offer at the "bottom of the pile" in a multiple-offer scenario and, if you're not competing, you risk being "bumped" (see last week's post) should they accept your offer and be presented with another before you have a firm sale on your current property.

Briefly, here are your three options to sell:

(1) List without having found a new home.
Yes, this means you could end up renting or moving in with family short-term. But it also means you'll be most competitive and have a firm offer on the home you fall in love with. Which is why you're moving in the first place; you want a better home. This option, though it means you could be moving twice, keeps you from settling and allows you to find and secure your dream home.

(2) Prepare the home for sale and be ready to list the day after your offer on a property is accepted.
This is perceived as the most comfortable option by most of our listing clients and it makes sense why. It appears you are reducing your risk - and you possibly* are - but only in the area of not having to rent/live with family short-term. It is NOT helping you secure the home which, again, is why you're moving in the first place.

In reality, this option is nearly as risky as not having the home prepared at all, as your offer is still subject to the sale of your home (putting you at the bottom of the multiple-offer pile) AND you still have to SELL your home. This means you will have that bump clause until a sale on your home is firm, which (at minimum) is usually two weeks from the time your offer is accepted.

Sometimes, it works out; however, what we commonly see here are our clients trying this option, getting disappointed 1, 2 or 3 times in offer scenarios - or getting bumped when another offer is accepted - and then reverting to option (1). Many people need to experience this disappointment first hand before going to option (1). We get it. But you're only making the process longer for yourself.

(3) Looking for a home and not preparing your sale until you have an offer accepted.
This outcome is similar to option (2), but far more reckless.
- You're adding days/weeks of prep & photo time.
- You risk only having a short time to get the house ready, so your staging may be haphazard, and you might not be able to get the best photographer because of timelines.
Not only are you risking losing the offer on your new home; you also risk not having your sale as great-looking as it should be which could mean your home selling for less than it could, leaving money on the table.

This was meant to be brief so cutting it here! Ha!

Every situation is unique, so if you're ready to chat, please message, text or call any time.

Nicole Darbaz, REALTOR®
Your Trusted, St. John’s Metro, Real Estate Expert
Keller Williams Platinum Realty
709-691-1373
NicoleDarbaz@kw.com