Do we Buy first or Sell first? What does the Agent wasnt us to do?

This is naturally one of the first questions I get asked. And the truth is, I don't think there is a right answer. I believe you have to weigh your options depdening on your situation. Your situation depends on a few factors not least of which include 1) area of interest and turnover in that area,
2) will your bank assist you in bridging should you need to carry 2 mortgages even for a month or two
3) how quick do you think your house will sell--relative to your neighborhood and immediate comps
4) do you have a contingency plan as to where you could live in the event you sell first and can't buy in time
5) how long have you studied the market
6) what's your risk tolerance

Look, in a market like today's with seemingly not an abundance of supply in many pockets in TO, the arguement may be that your house, all things being equal should sell fairly quickly but the supply may not be great in the area of interest and result in high demand and multiple offers on the place you want to buy making the purchase end more complicated then the sell.

Alternatively, some banks will just about mandate these days that you sell first so you know what you're dealing with in terms of money to buy and they won't have to set up any extra financing for you or hold their breath that your current house doesn't sell quick enough

There are a few strategies that can help reduce the anxiety and put you in the driver's seat. If you sell first, try and ask for a long closing date to insulate yourself with time to purchase your new house. Of course, inventory narrows in the dead of the summer so keep that in mind as it does in the dead of the winter.

If you buy first, come up with a number (emergency number) that if you had to give away your house you could easily fetch. Of course, you'll get more then that number but insulate yourself so you don't buy too much and then put the pressure on to turnaround and get an unrealistic dollar on your current home.

The job of a good agent extends beyond listing and negotiating homes. It's helping you stay grounded and not getting overly emotional in a market like today's so one can make as informed a decision factoring in all costs involved as well as how the bankers are going to view the transaction.

Some believe that agents like when you buy first as it immediately puts pressure on you to sell your house quicker and gives the agent leverage on you. If that's the kind of agent you feel you have...yikes!

If you have further questions (and you really should) around this..please don't hesitate to call or email anytime.

Best-
Michael Gruenstein MBA CSC
Re/Max Realtron
http://www.TheSmithsBuyAHouse.com
mgruenstein@trebnet.com