Entering a contract to sell your home before you get qualified to buy another home is problematic. Your financial situation may have shifted since your last purchase, and you may not meet the requirements for a loan or be unable to sell at a price that enables you to buy the kind of replacement home you desire. You might have to rent or buy another house, which is far from ideal. Before you decide to sell, get pre-approved by a lender you have confidence in, and study the housing market in the area in which you want to live to get a good idea of how much it will realistically cost you to buy. Could you make plans in case you have to move right away?
Wasting Time on Unqualified Buyers
It is a wasted effort to show your home to someone who cannot buy it. An example is the seller who spent two weeks preparing his home for an acquaintance who wanted to buy it. The seller paid $1,000 to remove an old shed and met with the prospect several times to discuss the price and terms. It was well into the process when the seller discovered the prospect could not qualify for a loan. Real estate agents spend considerable effort weeding out showings to non-qualified and unqualified home shoppers.
“Hovering”
Whenever possible, don’t be home during a showing. This is impossible or impractical if you are selling the home yourself. If you have a real estate agent, leave when the house is shown. Lurking sellers make buyers nervous. Buyers may feel they are intruding and then rush through. They may be hesitant to talk about changes to the home or features they don’t like. Buyers will feel uncomfortable closely inspecting the house in the presence of the owners. It’s easier for buyers to visualize the home being theirs when they can critique and discuss the home among
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