In Hot Real Estate Markets...
What Comes First - Listing or Buying?

In the early 2000's, some of the hottest real estate markets existed in the US and Canada and we were seeing the characteristic patterns that go with it.

In a hot real estate market, the inventory of attractive listings can be quite low.

Homebuyers are aggressively going after properties, sometimes paying record prices for the few attractive, well priced homes on the market.

These hottest markets are good news for the homeseller, while homebuyers often find their choices are limited.

Unfortunately, there’s no one right answer to that question.

However, while each situation is different, there are some common factors to consider that may help you make the right decision.

When demand is higher than the supply of housing, the resulting "real estate seller’s market" often brings buyers who are quick to make an offer when they see something they like.

Also, their first offers are often quite good ones, since they don’t want negotiations to drag on until another prospective buyer enters the picture.

Your real estate agent can help you price your home smartly to take advantage of this market and ideally, your home will sell at a good price within a short window of time.

However, if your home does sell quickly, it doesn’t necessarily mean that you have to leave it quickly. Your agreement of purchase and sale will specify your transaction closing date. While this date is typically sixty or ninety days from acceptance of the offer, you are free to choose a closing date that’s much later.

Again, since it’s a real estate seller’s market, your home buyers will likely be agreeable to your timing, since their primary objective is to get the house.

That gives you additional time to find a house that’s right for you, and you’ll now be going into that process knowing exactly what proceeds you’ll net from the sale of your existing home.

Selling your existing home first helps keep your offer to purchase your next home as clean, simple and attractive as possible.

By eliminating the need for a condition or contingency to allow for the sale your existing property, you’ve removed any fear the seller may have about holding up the sale for a prolonged period of time, or the very real chance that the condition may never be fulfilled.

Going in with a firm offer puts you in a much better position to negotiate the sale of your next home than you would with a conditional or contingency offer.

Your real estate agent can counsel you on the pros and cons of buying or selling first, and can help you to make an informed decision based on the real estate market conditions in your area.