Q & A: Timing a Home Purchase

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I want to sell my home but I am unsure the right order to do things. How can I time the sale and purchase of a new property? Should I be looking while my home is on the market?

If the real estate market is robust in your area, then it is advisable for you to begin your search for a new home now. Areas experiencing strong activity have little inventory and, in the event you find something that meets your criteria, you may be able to negotiate for a delayed closing on your new home, if your present home is not sold. On the other hand, if you are in an area where sales are not robust and there are many homes on the market, you may wish to slow your search for a new home down until you have found a qualified buyer. In this scenario, you may also wish to negotiate a closing date that will take the pressure off you to move out immediately.

Why does purchasing a short-sale take so much longer than a regular real estate purchase?

For one thing a short sale involves more parties than a normal transaction. In addition to the buyer, seller, buyer's lender and attorneys (depending on your state), a short sale involves the seller's bank, at a minimum. There may be multiple banks or investors depending on how many loans there were on the house. Buying a short-sale can be a great deal, but it can take a long time if the work that was needed to confirm everything and get the process moved doesn't take place early on. If that is the case, the contract may still need to be run through multiple levels at the bank before they give their approval/acceptance. The other issue here is that there are an awful lot of short-sales due to the housing bubble.

I want to buy in New York City, but I'd like a good deal. I hear NYC is hot right now so can I still get a good value?

While real estate in NYC is "hot," there are still neighborhoods within the city that offer relative value. In addition, as the highest percentage of apartments listed for sale are co-ops, many are more negotiable than newer condominiums. Working with an experienced real estate professional will almost certainly be helpful in helping you to narrow your search criteria and identify properties quickly.

There are eight homes for sale on my block. They are all basically the same model and size. Some are more updated but the price range is rather large between the homes. If I want mine to sell fast do I have to make it the lowest price even though it is nicer than some of the others?

There are many different pricing strategies when there are multiple comparables on the market. Consulting with a real estate professional can be helpful to you so that you can price your home to cast the widest net and attract the most buyers. If you price your home lower, you may find that it will generate a bidding war. It is also very important, regardless of pricing strategy, that your buyers are qualified for the purchase.

Dottie Herman is CEO of Douglas Elliman. If you have a real estate question for Dottie, please send it to: Reporters@WPCnews.com