Have you ever wondered if it makes more sense to sell your home before buying another home? Many homeowners sell their home first before buying another because they are unable to afford two homes simultaneously. For some home sellers, the buying and selling processes happen at the same time. It goes without saying that these two processes can be overwhelming. So, is it better to sell your home first or buy a new one? At Sell or Dwell we can help you to navigate the two processes smoothly by offering invaluable tips and advice. Take a look at a few options to consider:
Selling Your Home First
Selling your home before buying is ideal in a buyer’s market. It helps you avoid paying interest on two loans or exhausting the equity because your home has delayed selling. Selling first also helps you to know the exact amount of money you can spend on a new home. Overestimating your current home’s worth and buying a new home based on that assumption can place you in a tough spot.
Selling first can be a plus if the settlement date can be extended, giving you ample time to find a house. But if the homebuyer wants to move in immediately, you may have a problem finding a place to live. If you don’t mind, you can choose to stay with family or friends temporarily as you buy your new home. You can also opt to rent a home or stay in a hotel.
Buying a Home First
In a seller’s market, buying a new home before selling is a better option because your property will sell quickly. Buying first also helps you to get that dream home – before other buyers grab it. It also eliminates the need to look for a place to live as you shop for a new home.
If you buy a new home before selling yours, be sure that it is enticing to buyers. Ensure the property is in excellent condition. Buying a home first means being ready to care for the costs of two households, at least temporarily. If you choose not to move to your new home immediately, you can opt to rent it.
Important Home Buying/Selling Tips to Keep in Mind
If you sell before buying, ensure everything concerning the sale is planned in advance so you make a quick purchase. Minimize the time gap between selling and buying so that rising property prices don’t affect you. Carry out research before you buy a new home. Determine what kind of property interests you and which area is ideal.
When buying first, get pre-approved for a mortgage as this will be attractive to home sellers. But avoid the pressure to sell quickly as you may get a lower offer than you expected. Take note that it may take more time to sell your house in a slow market. Create relationships with real estate agents to stay informed when great properties are up for sale.
The decision on whether to sell your home before buying another is not an easy one and needs careful consideration. The idea of buying a new house before selling your current one may seem exciting but consider the downsides as well. On the other hand, selling your home first may seem ideal but it may not work in all circumstances. Contact Sell or Dwell and we can help you make an informed decision.