Like the chicken and the egg, there is much discussion whether you should sell your home before you buy the next, or vice versa.
Our local real estate market, where homes are selling fast, and there is not a lot of housing inventory, has made some people question whether there is a right way to move on… a one size fits all solution.
There are benefits (and negatives) to both buying first and selling first. Let’s consider the options:
Buy First, Sell After
• You can take your time to find just the house you want
• You can take advantage of low interest rates – take the uncertainty out of the equation
• You can have time to do renovations/improvements to the new home before moving in, limiting the disruption to your routine.
• This approach does require you to have the willingness and the ability to potentially carrying the costs of both homes for a period of time.
Sell First, Buy After
• You know exactly how much money you have to invest in the next property
• You will not take the chance on being pressured to sell your home in order to finalize your move
• You do not have the costs of bridge financing your purchase
There are other considerations also when looking at these choices:
• Do you have somewhere to live should your home sell before you find the perfect one to buy?
• Do you have somewhere to store your personal items should you need to?
• Can you handle the financial pressure of owning two homes?
• Does your current mortgage (if you were moving it to the new property) have any penalties if there is a time lapse between property ownership?
• Have there been any properties available that meet your requirements recently? Is it likely that if you sell first you will quickly find what you are looking for?
• Do you know exactly what you are looking for?
If you are wondering how you should handle your move, call one of our qualified sales professionals. They will be able to sit down with you and discuss all the advantages and disadvantages of the two approaches, and help you make the right decision for your move.