Staten Island Real Estate News, Advice & Information

This is a question I get once in awhile, mostly when I meet folks out on an appointment to view a home. However, for a homeowner the prospect is of having to sell their home before settling on the home they want to buy, seems a bit unsettling.

Here is what usually happens; many folks will look at homes for months until they find the home they like, make an offer, and if the homeowners accept it, then decide its time to sell.  Usually, that requires getting the absolute highest price for their house in less than 2 weeks. Ok, the reality of this sale coming together are about the same as a herd of buffalo charging down the street, in a hail storm, between the hours of 5 and 7 pm, on the 2nd Tuesday of the month, on an even numbered calendar day. While some might call this a sale on contingency; I wouldn’t, this is a sale on absolute luck. As a matter of fact, it may even be difficult getting a lawyer to draw up contracts on a scenario like this. Yes, once in a blue I’ll be presented with just such a scenario, and a long conversation about expectations is usually in order.
 
Realtors® and lawyers representing seller will tell their clients, offers like these are not likely to carry much weight. Therefore, in most cases, the offer is declined outright. You really need to ask yourself, would you take your house off the market and allow the buyer to maximize the sale of his or her sale while you wait. I think the answer is quite apparent. In most cases you home must be under contract of sale in order for a contingency offer to be accepted. Essentially, that means going to market with your home and having sell, prior to buying. While some other scenarios will permit contingency sales, usually there are significant limitations. You should discuss some options with a real estate attorney about what those options are.
 
However, when someone looks to improve their living situation much of fear and anxiety associated with making that decision in nearly every case is unrealized. If you plan properly with your Realtor® and attorney this process can be much less worrisome.

Here are some key questions you need to ask yourself in this process.
 
 
What will my house sell for and is it realistic to the marketplace. (You will do more harm than good if you overprice a home in this real estate market).

What will I have for a down payment on my next home after the sale of my home?
Beyond just the price of the home, what are the costs associated with this upgrade I.e. Interest rates, higher taxes, utility bills, closing costs etc. Can I afford it?

Is it what I expect in my next home available within my price range, in an area I like?

What is your highest and lowest price limit in completing this upgrade or downsize?
 
What are my time frames for moving, how will it take, and what should I expect as a time frame in completing the sale of my home and the move into a new home?

What are the motivational reasons for making this move? Quality of life, financial, or other?

Is this the best time to do it? For people upgrading their home, my answer is this is probably the best time in more than two decades. Fundamentally, it’s much better to upgrade in a down market than it is in an up market.  In very simple terms, if the real estate market is down 10%, a $350,000 is down $35,000 a $650,000 in down $65,000 meaning as you move up in scale prices decline by a much more significant dollar amount. the inverse is true in an up market.

Can I clear the emotional hurdle of moving forward with the sale of my home, with a bit of uncertainty about the specific house I will be upgrading to? Quite frankly, I have never personally been in a situation where someone who has done the right research and preparation settle on a home they didn’t like.

Looking at homes that are possible upgrades is a good first step, getting quality advice about the entire process of upgrading your home is even more important. If you’re contemplating the step of upgrading, finding the right person to do it is key to a multi faceted transaction. Sometimes the process of selling a home can be a series of transactions that have to follow in specific order. Coordinating the process usually requires a consistent amount of contact with all participants in each of the transactions. A good Realtor® will work diligently in putting this together.
 
Having a Realtor® explain the positives of upgrading/down grading is great, but preparing you in avoiding pitfalls is crucial. Most of all, finding a Realtor®who has dealt with the sale process of this type is key. You want to know the experience of the Realtor you use. If you want to gain insight into that experience, have them explain the different types of issues they have faced in completing an upgrade or downsizing sale of client.
 
(Part 2) You’ve decided its time to upgrade. What’s next? I will have that post for you next week. If you are contemplating upgrading or downsizing your home and need to ask a few questions feel free to call or email me at Anthony@realestatesiny.com.