Buy First Or Sell First? That Is The Question

Buy first or sell first in Silicon Beach? We've got all the angles covered!

Ugh. The chicken and egg of real estate.

Buying and selling real estate are each big transactions to manage in and of themselves. Putting them together can be enough to make you pull out your hair.

Let’s break it down. We like bite sized manageable chunks and we think you will, too. 🙂

Buying First

If you buy first, you’ll only have to move once and your current home will be empty and readily available for showings without any inconvenience to you.

But how does buying a second home even work for most people?

First, you’ll need a down payment for your new home. Consider these sources:

• Your bank savings

• Borrowing from your retirement plan (check with your tax advisor but real estate loans to yourself might be a viable option)

• Borrowing from a family member who might like a nice return on a short term loan

• Shifting stock market investments into real estate (either temporarily or permanently)

• Tapping your existing equity with a HELOC or other bridge loan

Also make sure you’re talking to a lender about whether you’ll qualify for both loans if you plan on buying with a mortgage.

Bonus tip! Maybe renting out your current home is a sound financial investment. Rental prices are on fire and not projected to abate any time soon. You might be surprised how much rent you can get over your existing mortgage.

Selling First

OMG, will you be homeless?? 😲 We all know how hard it is to buy a place right now. And prices just keep going up, up, up so waiting to buy is problematic, right? And then there's interest rates on the march upward.

Let’s look at the positives first. 

If you’re downsizing, you’re more likely to be a cash buyer and may have an upper hand in bidding on your next home. If not all cash, you might have more cash than many of your competitors on any particular property and that always appeals to sellers.

Whether you’re upsizing or downsizing, you’ll have more flexibility without the need to sell before you close. You can continue to rent if the seller needs time or you’re ready to move fast if that is what a seller wants (assuming you have your financing all buttoned up if you need it).

Another big positive is that you won’t be juggling two mortgages.

But what about the negatives?

You have to live someplace, you have to put your stuff someplace, and you don’t know for how long. Sigh.

And it can be highly disruptive and stressful to live in temporary quarters. Double sigh.

You might also have to eat some extra expenses (storage, unused rental commitment), but prepare and all of these are manageable.

By forging a strong relationship with us or another great agent, you will have access to more up to date information on the local buying and selling trends to help you gauge the immediate pros and cons for buying first or selling first. Schedule a one-on-one strategy session with us now. 

Buying & Selling Simultaneously

This can be done, but it’s not for the faint of heart. As a seller, right now you can pretty much dictate any terms you want. Want a contingency that you find another home before you close? There are buyers who will agree to that. Want a flat three months to move out? There is likely a buyer who will agree, but as you narrow your buyer pool to those who can accommodate extra restrictions, your ability to maximize your selling price will also come under pressure. The highest price for the sale of your current home comes from the most buyers competing to buy it.

How Else Can We Help?

There are lots of ways we can help you.

We can put you in touch with lenders we know are really good at handling complicated situations. You’re going to need a very experienced and responsive lender. Trust me when I say that not every lender brings the requisite experience and responsiveness, especially right now when lenders are so busy with purchase applications and re-fi’s.

We can help you sell your current home, if that is in your equation. 

If you’re far away from us, we have a national network of trusted agents and can help you find a listing agent who can handle the complexities of a simultaneous purchase and sale. We network a lot! If we don’t know somebody already in your area, we will find you the right person and we know all the right questions to ask. Don’t use your brother’s kid or the nice lady from church for a complicated deal like a simultaneous or near simultaneous sale and purchase.

If you’re in our area, we are experienced listing agents and would love to help you sell for the highest price on the terms you want. Let us send you our marketing plan for your consideration. Request it here. 

And of course, we’re here to help you buy your next local home or help you find a stellar buyer agent in your next location. Read more about our proprietary Buyer Edge Program here. And also know that we have a few ninja tricks for finding off-market properties that might make your whole process just a little easier, too. These tips will surely help, too. 💪

So what's it going to be for you? Sell first? Buy first? Both? Let's talk!

This post is from our “Buyer’s Edge” series, content designed to give real estate buyers in Silicon Beach an edge in a competitive residential real estate market. Read more about our full Buyer’s Edge program on our website. Want help buying real estate in Silicon Beach? Contact us, grab time on our calendar or join our drop in office hours on zoom. Need help beyond Silicon Beach? Reach out and let us help you find a Real Talk agent in your area.

By Tracy Thrower Conyers

Tracy is a realtor specializing in Silicon Beach, with a hyper-emphasis on Westchester & the Playas. She is a past practicing attorney & proptech founder. Tracy is an early adopter of all things digital and 22-year real estate industry vet. She's been quoted on topics of Silicon Beach real estate by trusted media outlets including the Los Angeles Times, KCET and The Argonaut.

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