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Just Ask Julie: Upgrading and downgrading… Do many people do that in this area? Do I buy or sell first?

Jan 16, 2017

What a great question!

We help many of our clients and friends upgrade to larger homes or downscale to smaller ones… primary homeowners, growing families, empty nesters, retirees, vacationers and investors alike.

Do you buy or sell first? Well, that all depends on your position, market conditions and your specific needs.

I do not know of many, if any, sellers who would accept an offer that’s contingent on the sale of the buyer’s property when the buyer did not already have a solid contract in place. When there is plenty of supply for the type of property that you want to buy, it is always good to sell your property first. Not only will it put you in a better bargaining position, it will also reduce your risk of owning two properties at the same time.

If the property you want to buy is unique and hard to find, you should go ahead and purchase it if you are able to without selling your current property. The important questions are, “Can you carry both properties at the same time?” and, “If you lost the opportunity to purchase the new property, would you live with regret?” If needed, you can mostly likely generate rental income on one or both properties to defray the cost of ownership should you need to carry both. The bottom line depends on your budget and what is best for you and your family. We will be glad to help you weigh your choices and and make a great decision.

There are some things to consider when selling your home. The biggest consideration is the market value. Market value is what a willing buyer is willing to pay for a home as well as what a willing reasonable seller is willing to sell. You must look at the sold price of comparable properties as well as your competition to determine where your property will most likely sell.

Condition of property is also a huge factor. People don’t want to come in and fix up a home all that much anymore, especially in this area. Most just don’t want the aggravation and, having not lived here yet, don’t know good contractors. And, those who are willing to do some work will want a huge discount in the sale price.

As you consider changing homes, also pay attention to the real estate market. Right now, the market is showing signs of appreciation in some areas and depreciation in others. It is all a matter of supply and demand. When buyers have many homes to choose from, sellers must become more competitive. When buyers have only a few choices, they have to pay the seller’s price. Let us know what questions you have about your home, and we will be glad to answer them. We also have a great site that can help you keep on top of comparable active, pending and sold properties. Let us know and we are happy to sign you up. You will have access to the market at your fingertips!

Thanks again for your great question. We are here to help you with your dreams. We have the tools, resources and experience to help you find the perfect home and sell your current one! You can find out more information about homes and your home’s competition online at www.allhiltonheadhomes, or simply give us a call. We would love to hear from you!