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Sell First or Buy First? Which is right for you?

When it comes to buying and selling real estate, timing is of the utmost importance. Unfortunately, it’s also a topic few people truly understand. The following are some tips to keep in mind when speaking with your real estate agent.

Sell before buying or buy before selling?

It’s an age-old question, but asking a few strategic questions might enable you to narrow your decision down to the right choice for your individual situation.

Is selling or buying a necessity or do you have some flexibility?

Job relocation, change of marital status or other life situations often require a relocation within a specified period of time. Equally important are the needs of the other party. Work with your agent to understand the opportunities and limitations of both sides in order to create a win-win situation.

Buying before selling typically benefits those who simply must move or relocate within a specified period of time and who are unable or unwilling to lease or rent. It is also a popular option for those seeking an exchange of property under Section 1031 of the U.S. Internal Revenue Code or for those who are attempting to minimize taxation via other deals.

Can you obtain financing or afford to carry both mortgages for any period of time?

If so, you may have a little more flexibility at your disposal. Speak to your agent about a leaseback or other temporary term. It’s often possible to use these when negotiating terms.

Selling before buying can benefit those who are unable to obtain financing with an existing mortgage in place or who wish to use cash proceeds from the prior sale to fund repairs, renovations or an entire purchase.

Prequalified and preapproved are two common terms you hear when it comes to getting a mortgage.  But it’s important to know they are very different things.

Prequalification

A prequalification takes 15 to 30 minutes and involves a few quick questions.  You typically do this before you look for a home.  At this point, the lender takes your word that everything you state is correct and will verify it at a later date.  A credit check is run, then all the information provided is put through an automated underwriting system, which will provide a preliminary status.  At the end of the process you’ll have an idea of how much money you can borrow, and often you will be issued a prequalification letter that states that a credit check has been run and, based on the information provided but not yet verified, you qualified for a specific dollar amount.  

Real estate agents will often ask for prequalification letters in the same amount of an offer they intend to submit on a property.  Sellers, knowing that a buyer can afford much more than they are asking for a property, will be less likely to negotiate downward or offer concessions.

Preapproval

A preapproval letter is much more involved.

It will only be issued after all the paperwork is received by the lender.  This includes so much more than income and assets, such as the sales contract, the title to the property and an appraisal, most of which are sought after a contract is submitted and accepted by the sellers.

One in five people does some work while on vacation, according to a new survey. They check voicemail and email, and take their laptop away with them, said the AP-Ipsos poll.

The culprit is the spread of electronic devices and the increasing expectation that workers will be available — even when they're on vacation, say experts.

But it's also said that for a vacation to be truly relaxing, you need to shut off from the office. So how can you do that?

You're really not indispensable

Many of us fall into the trap of thinking we are indispensable. But if we plan correctly, that usually isn't the case. So the first thing to do is to understand that work can continue without you.

Plan ahead

Spend some time in the weeks and days before you go away arranging for people to take over every aspect of your work. Give people you trust the power to make decisions. Or create a set of rules over what can be acted on or what can wait until you return. Give detailed information covering  issues that are likely to occur or decisions that will have to be made while you are away and provide a guide on how to cope with them.

If you must do some work…