Sell First or Buy First?

When it comes to buying and selling a home, one of the biggest questions that homeowners face is whether they should sell first or buy first. This can be a tough decision to make, and there is no one-size-fits-all answer; it ultimately depends on your specific situation and the market you're in. In this article, we will explore the pros and cons of both options, so you can make an informed decision that works best for you.

Selling First:

One of the biggest advantages of selling before buying is that you'll have a clearer picture of your financial situation when it comes to purchasing a new home as you'll know exactly how much money you'll have to work with and can make a strong and decisive offer once the right home comes up. This can make the home buying process much easier, as you'll have a better idea of what you can afford. 

On the other hand, one of the biggest downsides of selling first is that it can be stressful to find a new home that meets your needs before your current home closes. This can be especially difficult if you're in a competitive real estate market with low inventory, where homes sell quickly and you need to compete with other buyers when making an offer. You may find yourself in a situation where you're forced to rent or stay with family while you search for your new home.

Buying First:

One of the biggest advantages of buying first is that you'll have the luxury of taking your time to find the perfect home. You won't be rushed to make a decision because you still have a place to live. This can be especially beneficial if you're looking for a specific type of home or location.

However, the downsides of buying first is that you might miss out on your dream home as you'll need to make an offer subject to the sale of your current home. This puts you at a disadvantage if there are other buyers interested in the same home as you who don't need to add a condition to sell their home first. You will either need to make your offer price very appealing to beat the other offers or you may be left in a panic to sell your home as quickly as possible. The alternative is to get a second mortgage if your home doesn't sell in time for closing. This can put a strain on your finances, and it's important to make sure that you can afford to carry two mortgages before deciding to buy first. 

The Process:

You'll need to work with a real estate agent who can help you price your home correctly and navigate the selling process, as well as a mortgage broker who can help you figure out your finances.

The first step before you ultimately decide how you want to approach this is to get a home evaluation so you know what you can potentially sell your home for in the current market. Your real estate agent can provide insight on the current market which will help you decide which option would suit you best and go over the closing costs with you. Next, you should speak to a mortgage broker so you know what you will be pre-approved for for your next property. No matter which option you choose, it's important to have a plan in place while staying flexible.

If you're selling first, have a back-up plan for where you'll live and store your belongings if your home sells before you can move into your new one. 

If you're buying first, see if you can be approved for a second mortgage as a back-up plan and decide if you're comfortable with potentially carrying two mortgages while you wait for your home to sell.

There are many things that will be out of anyone's control and hard to predict, but with the right professional guidance, it is very possible to buy and sell at the same time, have all of the dates line up nicely and get you from your current home into your new home smoothly.