Dear David,

I am a new agent working on my first listing, for sellers who want to upsize within their current school zone. I’m trying to coordinate the sale of their current home with the purchase of their next one. Their expectations are optimistic, as the house hasn’t been updated to current market standards. How do I manage my buying and selling strategies in these challenging market conditions? – LOOKING FOR ADVICE

DEAR LOOKING: Congratulations on your first listing! Navigating a simultaneous purchase and sale in a challenging market takes planning. Clear communication and thoughtful strategy will be needed to guide clients through the process.

Sit down with your sellers to clarify their goals, timeline, financial position and level of flexibility. Staying in their current school zone may affect their buying options, and you’ll need to be clear about this. Determine if your sellers need equity from their current home to fund their next purchase, and if so, find out whether they qualify for (or are comfortable with) bridge financing. Also, gauge their risk tolerance if things don’t align perfectly: what happens if their home takes longer than expected to sell, or if the right property pops up before they’re ready?

Prior to listing their current house, set realistic expectations about price, given its condition. If your clients are overly optimistic, or believe the home is more updated than it is, show them comparable properties that have sold recently (which is not the same as what’s listed). Market data and visuals can confirm that today’s buyers are looking for move-in-ready homes, and pricing too high can result in missed opportunities. You might say something like, “Buyers today are looking for value. Even though your home has great bones, we want to position it competitively so we don’t lose momentum when it hits the market.”

When the market is unpredictable, selling first is often safer. Clients know exactly how much they’ll have to spend, and won’t get stuck carrying two properties. Align the timing of both transactions using conditions, closing dates and contingency plans. If your clients happen to sell before finding a new home, a longer closing or temporary rental might solve the problem.

If your clients buy first, they’ll need to price their current home sharply, and act fast to attract buyers. Strategically, aim for strong showing activity out of the gate, a shorter conditional period, and longer closing. You may need to make an offer conditional on the sale of their current property (not ideal, but sometimes necessary), or look into bridge financing. 

PRO TIP: Keeping your clients aware of all the moving parts helps prevent surprises and builds trust in your guidance. Stay proactive with showing feedback, new comparables, and clear next steps. Homes that are priced and presented well continue to sell in this market, so buying and selling at the same time is entirely possible with a plan. #Advice #AskDavid #TheNegotiator