Chicken or the Egg? Cart before the Horse? Buy/Sell or Sell/Buy?
Ever wonder which came first, the chicken or the egg? If you actually spend any time thinking about it, it is quite a conundrum. Whichever it is though, doesn’t really matter at this point. We have chickens and eggs in adequate supply so the order is just not that important.
Now, when it comes to putting the cart before the horse, I’ve seen it done once before with the expected poor result. Ever see Fiddler on the Roof? Remember in when Tevye’s horse came up lame and he had to put the yolk over his shoulder and pull the cart with the horse bringing up the rear? Tevye found out the hard way that you definitely want the horse before the cart.
Now this third topic is in reference to the order in which people plan a move. Like the Hermit Crab who carries his shell/home with him all the time, right up to the moment he finds a new larger, more attractive shell to move into, it is human nature to seek your next shelter while still inhabiting your current shelter. Shelter after all is, is one of the core human needs right up there with food and water. However, the Hermit Crab doesn’t require a mortgage to obtain a new shell. Unfortunately, due to the cost of a desirable human home, most of us do.
So we want to find the perfect home to move right into but we don’t want to give up the security of the home we are in now. Here’s the rub, we can’t usually buy the house we’ve looked for and fallen in love with because without selling our current home and satisfying the existing mortgage, no lender will give us a mortgage and add to our debt load. Even those who can qualify for 2 mortgages are usually petrified at the thought of having to pay on 2 mortgages for any period of time if the original home doesn’t sell right away. What is the answer? What should you do first?
Fortunately we are living in the information age. Everyone can do a little house hunting online and whet their appetite…get the juices flowing. If you find something you really like and want to see it, by all means, CALL US! We would be happy to show you the home(s). However, if your home isn’t sold, listed or virtually ready to sell, you run the risk of falling in love only to end up with a broken heart! It’s a common story really. Boy/Girl meets home. Boy/girl fall in love with home. Boy/girl can’t purchase home. Boy/girl loses home to other suitor who could get a mortgage.
Sometimes you get lucky and write an offer contingent upon selling your home and it works out. But make no mistake, your new love will continue to seek qualified suitors all the while and too often, you will have to settle for the next love of your life.
To sell before you buy and not risk losing a home you love you can start thinking about a temporary housing solution for the period between the sale of your home and the purchase of your next dream home. Shacking up with a friend or family member can be economical and interesting. Think about the experiences and stories you’ll acquire from that one. Or, maybe a short term rental of a house, condo or apartment with most of your belongings in storage. A little planning upfront could help you get mobilized and get your home sold so you can proceed with much greater clarity of your financial situation. How much do you have to put down? How much can you qualify to borrow? How much do you want to borrow? With this information you’ll be ready to pounce when you find THE ONE.
So buy/sell, sell/buy…it’s ultimately your call. Are you lucky and like to take chances? Do you like to take control of a situation when possible? Either way, feel free to contact us for advice and consultation or to just start looking and get those juices flowing.