“Should you buy first or sell first?” That’s the question we are often asked as real estate agents, and not an easy one to answer. The quick answer is: it depends. There are pros and cons to both. You should ask yourself a few questions before you decide.
1. What is your risk tolerance? If you need the money from the sale of your present house before you can proceed with a purchase (like most buyers), then selling first is likely a better move for you. You don’t want the expense of carrying two houses, bridge financing, borrow against a secured line of credit or whatever else that might involve.
2. Are you willing to rent? If you aren’t able to find a place to buy and move into before you have to be out of your place then you can always rent until you find what you are looking for. The risk you take when you buy before you sell is that you then have more pressure to sell your current home (especially if you need the funds from the sale of your existing home to pay for your new home). Renting may be a cheaper and easier option.
3. Are you dependent on the proceeds that you generate from the sale of your house? If so, you might consider buying first or if you have a great place to sell in very desirable location and are prepared to price it right then buying first could work for you. This way you know where you are going before you give up your existing home.
As Realtors, we deal with the question “Should you buy first or sell first?” all the time. Normally what we do is start searching for your next home. After we’ve seen, five or fifteen we usually have a pretty good idea whether or not we will be able to help you find your dream home. At that point, we continue your search and advise that you get your home on the market.
If you’re considering a move in the next year to 18 months, please call or email. Helping you is what we do.