Should I buy first or sell my existing home prior to making my next purchase?
That’s a tough decision most homeowners will have to face at some point. There is no right decision, but it’s important to know the potential consequences of both.
Buying first allows you to wait until the right home comes up for sale. It can also be less stressful knowing that if your offer is unsuccessful, you have time to wait for another one that meets your criteria.
However, if you do buy first and are unable to sell your existing home in a timely manner, you may face difficulties securing a mortgage for the new home, or may have to pay two mortgages for a period of time.
By selling your existing home first, you will know how much money the sale has brought in. That will help determine how much you can afford to pay when you buy your next property.
However, if you have difficulty finding a home to purchase, you may end up rushing the process and settling for a home that isn’t ideal for you, or paying more than you planned.
If you decide to sell first, have a contingency plan in case your closing dates do not align, like a short-term rental or staying with family or friends.
Speak with your real estate professional before starting the buying or selling process. They can help you decide which route is better suited to your circumstances and ensure that appropriate conditions are contained in offers made or received.