Finding a New House or Listing Your Current House?
The times have definitely changed. As little as 3 years ago, home buyers had lots of time to look at houses and make decisions regarding houses. Average time on market for most homes was over 6 months. A home buyer who had an existing home could write an offer with a home sale contingency and get it accepted and still have time to sell their home. If a buyer was looking for a condo, the time was even more.
Alas, this is not the case anymore. I talk to people everyday with a home to sell, but they don't want to list it until they find the home they want to buy. This thinking does not work anymore. With houses and condos selling the first weekend or even the first day if they are priced right, there is no time to even take time to think about buying a home anymore, much less writing an offer with a home sale contingency.
Today, you can write an offer with a home "closing" contingency. This means that your home already has an offer and a closing date. Sellers are much more likely to take a home closing contingency than a home "sale" contingency which means that you don't have any offer on your house.
We have a very good lesson in economics going on in our market in South East Wisconsin today. We have lots of buyers, but not as many listings. Therefore, supply is down and demand is up and we are in a seller's market. Prices are high and demand is high. There is a lot of pent up frustration among buyers who haven't been able to find a home.
In this market, it is a definite must to get your house on the market and get an accepted offer before searching for the next home. The house that is here this week will not necessarily be here next week. If you are sitting on the fence about listing your home because you want to find the new home first, I would bet the house you think will be your new home won't be there when your house sells.