Buying and Selling: What Should You Do First?
Deciding to sell your current home and buy a new one can be an overwhelming task, especially when you’re unsure of the best sequence of events. Should you sell your current home first or buy your new home before selling? Each approach has its own set of advantages and drawbacks, and understanding these can help you make an informed decision. Let’s dive into the pros and cons of each option.
Selling First
PROS:
Financial Clarity: By selling your home before buying a new one, you gain financial clarity. Knowing the exact amount of equity, you have from the sale allows you to determine your budget for purchasing your next home.
Stronger Negotiation Position: With your current home sold, you’re in a stronger negotiation position when making an offer on your next home. You won’t need to include a contingency of the sale of your current property, giving you an advantageous position.
Reduce Stress: Selling first can reduce the stress of carrying two mortgages or worrying about the timing of selling and buying simultaneously. It allows for a smoother transition between homes.
CONS:
Temporary Housing: Selling your home before buying may require you to find temporary housing while you search for your next home.
Limited Options: Without a place to move into immediately, you may feel rushed to find a new home, limiting your options or potentially settling for a property that doesn’t fully meet your needs.
Buying First
PROS:
No Rush: Buying your next home before selling your current one gives you the luxury of time. You can carefully search for the perfect property without feeling pressured to make a rushed decision.
Smooth Transition: Moving from one home to another is seamless when you already have your next home secured. There is no need for temporary housing or storage arrangements.
CONS:
Financial Strain: Buying before selling means you may have to carry two mortgages simultaneously, which can strain your finances.
Pressure to Sell: Without the buffer of time provided by selling first, you may feel pressured to sell your current home quickly, potentially leading to accepting a lower offer.
Contingency Challenges: If you require the funds from your current home to purchase your next home, you will need to insert a contingency that your offer is subject to the sale of your current home. In competitive markets, this makes your offer less likely to be accepted.
There is no one-size-fits-all answer to selling or buying first. Each option comes with its own set of pros and cons which must be weighed carefully based on your individual circumstances and preferences. Whether you prioritize financial stability, flexibility, or minimizing stress, considering these factors can help you make the best decision for your situation.
Want professional advice on what is right for you? Reach out!
#AgentSheyla
Sheyla Duncan
Phone: (204) 871-3228
Email: Sheyla@JenniferQueen.com
