Buy or Sell – Which Should Come First?
It is a common misconception that you have to sell your home before buying a new one. In all actuality, plenty of people buy first and then sell. There are advantages both ways, however, only you can decide which scenario is your better option
Reasons to Buy First
1. Have a Home Waiting for You – It’s nice to know that when your home sells, you already have a place to go.
2. Take Your Time Moving – Rather than being rushed on moving day, you can gradually move into your new place a little at a time.
3. Remodeling and Cleaning – Whether the house needs to be cleaned from top to bottom or you want to do a little remodeling before moving in, you will have time to take care of this. Plus, the home will be empty, so you don’t have to worry about moving around furniture to paint or tearing up old carpet to upgrade the flooring.
4. No Rushed Proposal – Quite often, buyers feel rushed into purchasing a home they don’t necessarily love simply because they are out-of-time. If you buy first, you get to take your time finding the perfect home.
5. Appeal to Buyers on a Timeline – If you have a place to move into, you may have an easier time selling your home. If a buyer interested in your home is on a timeline then being able to move in quickly will be very attractive to them.
6. Smooth Move – If you buy first, you won’t have to go through the hassle of putting everything you have in storage and living with a friend or in a short term apartment while you look for a new place.
Reasons to Sell First
1. No Risk of Being Stuck with Two Mortgages – How many horror stores have you heard about people being stuck with two mortgages for several months? You hope that you only need to make two payments for a couple months, but what if it takes longer to sell?
2. Hold Out for a Better Offer – If you are making two mortgage payments, you are more likely to accept a lower bid just so you can get out from under that second payment.
3. Down Payment Assistance – The money from your home sale will come in handy for a down payment. However, keep in mind that if your home has equity, and you have good credit, you may qualify for a bridge loan.
Trying to decide whether to buy or sell first is not always easy. In many cases you may plan to do one thing and end up doing the other. Being flexible and open to both options will help you determine which method is best for your situation.