Expert: Jessica Bryan - 2/20/2006

Question
my question: i am looking to relocate but in order for me to buy another home i have to sell my home. what do i do first? try to sell my home first or look for another home that i like and put a deposit on it.also do i get a lawyer to draw up a contract stating to the owner of the new house after i put a deposit on it that i cannot close the deal until i sell my home.

Answer
Dear Anthony;
You can begin researching homes in the area in which you want to live by checking the Internet for listings.  This will give you an idea of prices and availability.  If you are in a market where homes move quickly, you will need to submit an offer without contingencies--that means that you will need to have your home under contract first and come in with a nice clean offer.  However, many people want to find the perfect home first especially if their needs are particular.  In that case, it may take a while to find the home and you might need to wait to sell your home. You should also research how quickly homes sell in your current neighborhood.  This wil give you an idea what to expect. You can go and talk to a lender about doing a bridge loan in the event you don't sell your home in time.  You can also try to submit an offer with a contingency that you will need to sell your home and see if the Sellers agree to this. (Many don't).  The best chance of getting a contingent offer accepted is when you are buying a brand new home that is under construction.  The seller often will accept the fact that you will need to sell your home during the construction period.  There is one other possibility and that is to sell your home with a contingency that if you cannot find another home, the deal is off.  Most buyers will not accept this, but you don't know until you try.  For the most part, I tell my clients to sell their home while they can and if they must move out before they buy or close on another home, then perhaps they can live in an apartment for a few months while searching for the perfect home in their new location.  This is inconvenient but assures them that they will not be disappointed in the end.  It also gives them a much better negotiating tool when submitting an offer to purchase since the seller knows that there is nothing in the contract that will stop the sale.

Good luck and best wishes.
Sincerely,
Jessica Bryan
Managing Broker
House to Home Realty Services