We are often asked what is the best strategy for buying a home when you have to sell your current home. Unfortunately there is no correct answer or optimal strategy. Instead you have to evaluate each buyer's personal situation in rendering advice.
For instance, if a buyer is only looking to move if they purchase a specific property then the best strategy is probably to negotiate with the seller of the specific property first. If the buyer cannot come to an agreement on the specific property then there is no point in listing their current home for sale. On the other hand, if the buyer can come to an agreement with the seller then the buyer will want to list their current home for sale as quickly as possible.
In contrast, if a buyer is set on moving regardless of a specific property coming for sale then the buyer would probably be best advised to put their house on the market immediately. The buyer can then start to identify types of properties and areas they might be interested in. By the time their home sells they will have likely identified one or more homes that suit their needs.
In either case, sellers of homes are very wary of home selling contingencies. In the first scenario above, the buyer may have to agree to a so-called "kick out clause", where the seller can continue to market the home to other buyers and should the seller find another purchaser before the buyer can sell their home, the seller can terminate the contract with the buyer.
Most sellers will agree to a provision in contract that terminates the kick out clause upon the buyer signing a contract for the sale of their current home.
If you have a question about your specific situation, please contact us. We're here to help.
