Deciding whether to buy or sell first can be a difficult decision. Both have pros and cons depending on your particular situation. Here are some things to consider when making your next move.
Buying First and Then Selling, may create 2 mortgage payments, which most people aren't comfortable handling. Also, buying before you sell could end up costing you much more in the long run...you'll be more inclined to lower your price to get it sold and not lose out on your new home, plus the carrying costs to keep the old home maintained and the utilities on, can deplete your savings rather quickly. In addition, you may not qualify for a loan on your new home if you haven't sold the old one first. Unless you have a plan of action in place that has taken into consideration these factors, buying before you sell might not be the best way to go.
But, What About Selling Before you Buy. This too can create some challenges. Where will you live if your current home sells before you've found your new home? Are you prepared to pay the new owner rent until you can find a new place to live? Where will you store all of your belongings if you can't move everything into your temporary living space?
One advantage to putting your home on the market BEFORE you buy a new home is that you'll have a much better position in negotiating with the seller, than if you didn't have your home on the market yet.
Every situation is unique. Be sure to discuss all options with your Realtor and lender, and then decide the best position to take for your situation.
If you need to make a move, but have a home to sell, give us a call. We'll help you sort through the options.
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