Buy Home Or Sell Home First?
When it’s time to buy a new home and also sell the current house that you’re living in, one of a homeowners biggest questions is: Should they buy home or sell home first?
It’s a difficult decision, as there are benefits and negatives to each. When you decide to selling your current house first, you usually put yourself in a better position to negotiate with buyers. You won’t “have to sell” your home just to avoid making double mortgage payments and can let it sit on the market longer in the hopes of getting a better price.
In addition, selling your home first typically allows you to be in in a better position once you sell their home and are looking to buy. This is because sellers typically like to to sell to buyers that have fewer conditions attached to their offer.
A condition that requires that you sell your current home first can be difficult for buyers to accept – especially in areas where the housing market is slowing. Sellers will generally accept a lower price for their home from individuals who have sold their home rather than those that still have property to sell. Selling your current house in advance will also help keep the buyer within their budget, as they already have the money from the sale of their home and know exactly how much they have to spend.
However, one of the larger concerns homeowners have when they sell their home first is that they cannot find a new house to buy. This can be very difficult as people don’t often wish to sell their home so that they can move into a rental property for several months.
If the real estate market is hot, prices may be very high. Therefore, finding a new home that you can afford can become increasingly difficult. However, if the market is slow, finding a new home could be easier than ever.
One way to avoid difficulties is to write a condition into any offer. Your Realtor should be able to guide you on how “hot” or “cold” the neighborhood you are looking to buy in has been for the past several months. Your Realtor can also guide you on the best way to write a condition that will likely be accepted and help you weigh the tradeoffs between prices and piece of mind.
What you decide to do depends entirely on your situation and what the market is doing at the time. Unfortunately, there is no right or wrong answer and either way, it can be a risk either.
