To buy or sell first? That is the question. At least it’s one of the questions we get asked most often when we meet with Buyers & Sellers. Unfortunately, there isn’t a one-size-fits-all answer. Fortunately we’re here to help you break it down and pick the option that’s best for you. Here’s a look at the pros and cons of each strategy.
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Reasons to buy before selling
- Avoid the stress of having to find your next property on a time crunch. Hot properties sell quickly; property selection in a market with tight supply may mean a longer search period
- Comfort of the current mortgage rate
- Give yourself time for potential renovation without having to worry about where to live
Reasons to sell before buying
- You know exactly how much money you have to spend on your next home
- Avoid the stress, cost and structures timeline of your house not selling
- Avoid bridge financing costs
Here are some important questions to ask yourself when deciding whether to buy or sell first:
- Where will you live if you sell first?
- What will you do with your stuff if you don’t close on your sale and your new purchase on the same day?
- Where will you put your money?
- Will you encounter any mortgage penalties?
- What is your worst-case scenario?
- How much uncertainty can you emotionally handle?
- What is happening in the markets you are buying and selling in?
In an ideal world, we’d all sell in a hot market and buy in a lower market, but rarely does it ever play out that way.
So what’s the right thing to do? Should you buy or sell first? It really depends on your individual situation.
- If you’re moving from a less hot market to a hotter real estate market, you probably want to sell first
- Buying first might make more sense if you’re moving from a red-hot market to a more stagnant market
- If you’re more concerned with buying the right new home than selling your current home for maximum $ in a short time period, buy first
- Sell first if maximizing the sale of your current home is your #1 priority
You’re probably thinking, “what should I do first”? Talk to a real estate agent, talk to two or three until you find the right fit. You can do this by asking for the market statistics of the area you are currently in as well as the one you want to be moving to. Ask them about their marketing strategies for their sellers as well as their buyers. Get as much knowledge as possible and then begin your journey to buy and sell. #knowledgeispower