Should I buy or sell my home first, what are the benefits?
Thousands of homeowners every year are faced with the same question, for new and experienced sellers. The answer is straightforward if you learn these simple concepts. Short answer, let the market decide.
Benefits of Buying First
The main benefit is that you will enjoy the luxury of shopping for homes without the deadline of your home’s close date. You have time to wait for opportunities and manage unsuccessful offers without stress, this can happen in any market.
Buyers using this method typically protect themselves by using a conditional offer based on the sale of their current home. This means that if you are not able to sell within a specified period of time, you are able to back out of the transaction. This is not ideal for the seller and will make the offer less attractive, especially in a hot market.
Benefits of Selling First
Placing your home on the market is a common approach if you want to minimize the risk of carrying two (2) properties, which is the main con to buying first. Buyers may want to reduce the sale price or accept a lower offer to avoid paying two mortgages, plus the cost of home ownership.
Selling first helps you know what you can afford for your next place, based on the sale price of your property. In a hot market, every advantage helps. Having the risk of discounting your home when first buying is not ideal for any seller. The best tip is to be diligent and quick when shopping for a home and putting in offers to improve your chances of securing your next home.
Minimize Risk, Reduce Stress
Both strategies carry risk, but here are a few tips to help reduce stress and have a contingency plan.
- If you sell first and can’t find the home you want to consider a short-term rental or staying with friends and family.
- When buying first consider a conditional offer based on the sale of your current home.
- If the purchase of your new home closes first, you might need something called “bridge financing” to cover the down payment and other closing costs until the sale of your current home closes.
- Talk to a registered Align agent for advice and solutions to help you through the process.
Final Answer: It Depends
Always know the market condition and talk to an agent to get the best experiences and reduce stress when deciding the buy your next home or sell your current home first.