Should I Make An Offer To Buy Before I Sell My Home?
You think you’ve found your dream Home for Sale in Franklin, Tennessee or the surrounding areas, but
the problem is you still need to sell the home you’re in now; do you make an offer, or wait? Real estate
expert Monte Mohr has some advice on how to handle this situation.
Here are some common questions that have been asked by real homeowners in Middle Tennessee:
Lonnie from Murfreesboro asked…
“We would like to sell our home and buy another one, but we do not want to own two homes at the
same time. Can you tell us the best way to go about doing this? Do we put a contingent offer on the
new one before ours sells?”
I really appreciate this question because everyone wants to know where they are going to go once their
home sells. But what I’ve learned over the years is that it is far more challenging to sell a home than it is
to find one to buy. So you want to put the majority of your focus into selling your property first.
Once you get your home on the market, wait until you start getting good feedback; that you’re in the
top 3 choices of homes. I refer to this as being a “bridesmaid.” Once you’re a bridesmaid, you know
you’re going to be a bride, so listen to that feedback. At that point, go out and start looking at homes
with the intention of finding your top three choices. Do not fall in love, just date. Once you find your top
three you are ready for that contract; once your home sells you will be in control.
Jennifer from Nashville asked…
“Two months ago we accepted an offer from a couple in Indiana to purchase our home. We knew their
home would have to sell first before they could close on ours. Our agent assured us that we could take
other offers from other buyers as our home would remain active on the market. Since accepting that
contingent offer our home has not been shown at all; can you tell us why? We really need to sell.
Unfortunately Jennifer is finding herself in a situation where she has literally put all of her eggs into
someone else’s basket. What happens is this: it’s an MLS requirement that once a home is under
contract for any reason, a realtor has to highlight that property in yellow. And, once it is highlighted in
yellow, when it comes up in the search criteria for that type of home, because there are so many homes
to pick from, agents immediately start eliminating them. As realtors we don’t show homes that we are
not sure that our buyers can buy.
So in this situation, the sellers have put all their eggs into the buyer’s basket and we don’t even know
what kind of housing market there is in Indiana right now. And we certainly don’t know if they have their
home priced right. So that is why the home showings have stopped – because nobody wants to show a
home that they’re not sure their buyer can buy.
Before we get to the last real estate question of the day, there are some new homes on the market in
the Thompson’s Station and I thought they were worth pointing out to you today.
Stephanie in Franklin asked…
“We’re ready to put our home on the market but before we do I want to go find our next home. My
husband says we need to sell ours first, but I’m afraid we will sell ours and not have anywhere to live.
Well I hate to take sides between a husband and wife, but in this case Stephanie’s husband is correct.
You really need to focus on selling because here’s what happens:
If you go out and put a contingent offer on another home as a buyer, you’re not a real buyer, you’re a
wannabe buyer. And since you’re not a real buyer, you’re not going to negotiate the best deal because
the seller isn’t going to come down to their lowest price for a wannabe buyer. Then, when you go back
and try to sell your home, if it doesn’t sell after a while, someone may make a lowball offer that you’ll be
more likely to accept because you’re afraid of losing the other one.
Ultimately what happens is you end up paying too much on the buying end, and you take too little on
the selling end because of that fear of loss. Remember, the fear of loss is always a greater motivator
than the hope of gain. So my opinion is to never put an offer on a home without selling yours first.
Here are some great examples of Happy Customers who followed my instructions when selling their
B.J. and Kara in Brentwood were concerned about where they would be moving to, but we waited until
we go that positive feedback and once we did, they went out and found some properties that they liked
a lot. Once we got that contract they were ready to take action and they bought their dream home.
Alan and Bridget in Nashville sold their home in 45 days. Alan was a little conservative and did
something different; he sold his home but he couldn’t find something he wanted to buy right out of the
box so he moved into temporary housing. Then when they found their next home, they got a $40,000
discount on the property because they came from a position of strength; not one of hoping to sell their
Brent and Sharon in Lebanon sold their home in 47 days and decided to downsize. They too were
concerned about where they would go once their home sold, but I explained the “rules of the road” to
them and they followed my instructions. They went out and found their top 3 choices and then in 47
days when they got the contract on their home, we were able to take action and we got a great deal on
If you’re looking to use any of my resources, please go to my website Nashville Real Estate Adviser and
there you’ll find an explanation of my ‘We Sell Homes For Free’ program where I bring my 25 years of
experience to the table for absolutely FREE, if you promise to buy your next home from me. People are
saving thousands of dollars. I’ve already saved people over $60,000 in commissions this year.
Don’t get me wrong, I’d love to have those commissions – I never dreamed that at this point in my
career I’d be doing it for free – but in today’s world we’ve got to think outside the box. I’m trying to
lower the expenses of selling a home so people can compete with the distressed properties that are on
the market, and it’s actually working!