Buying & Selling – What Comes First?

Are you contemplating buying and selling your home, but don’t know where to start? Consider each of the following to make an informed decision on the order you should buy and sell your home. Buying and selling simultaneously is also a viable option.

Buying & Selling: Why Sell First?

The pros of selling your home before buying a new one comes down to one thing, practicality. This is the more conventional route, as it causes less financial stress and more security. Selling first is ideal for people in a buyers’ market. Not only will you dodge two mortgage payments, but it also may be easier to be approved for a new mortgage.

Furthermore, it grants more cash to put towards the purchase of your new home. This is an influential selling point. It is what often sways people to sell first because if you know your profit, you will align your earnings with a home that’s in your budget.

If you need to access your current home equity to buy your future home, selling first might be the best option for you. It also gives you the luxury of waiting until you receive a satisfying offer, without feeling pressured by the fact that you already bought a new house. This will ultimately avoid a rushed home sale.

Buying & Selling: Why Buy First?

Although the advantages of selling your home first are convincing, the cons also hold weight. The disadvantages can be identified through the instability of the process. Two moves alone are a cause for stress, but this also means double the moving cost. Selling first could also mean more storage costs.

The biggest inconvenience of selling first is finding, moving in, and moving out of your temporary housing situation. The burden of not having a permanent living situation can pressure you into pursuing a home you’re not undeniably in love with. These concerns are why many people opt to buy before selling. You can take as much time as you need to search for a property that is right for you. Thus, you are in control of your timeline.

Still not feeling definitive on how to proceed? Consider the following list of questions to further decipher the right path for you:

• Are you in a position to manage two mortgage payments at the same time? It’s vital that you know your budget and the expected costs of both scenarios. Ask yourself if you can tackle the taxes and expenses that come with maintaining multiple properties.
• How competitive is the market? If you are considering buying a home in a highly competitive market, consider that it might be difficult to find a home swiftly. It may be beneficial to sell your home first to maximize your profit. In return, this will delay the purchase until the market cools off.
• What is your timeline? Consider how quickly you need to move as this will play a role in whether or not you need to buy first in order to meet your deadline.
• What condition is your home in? The status of your home needs to be a priority when making this decision. If your home is ready to be moved into, you are certainly a candidate for the simultaneous transaction. However, if your home requires repairs and work, you will be met with more expenses paired with a lower sales price and ultimately a longer time on the market.
• Do you know exactly what you’re looking for? Are you prepared to create a list of your non-negotiable wants and needs for your future home before you list your home? This includes research on neighborhoods and other deciding factors based on your personal preferences.

Tips for a Simultaneous Transaction

There is also a third option that is worth considering– It is possible to buy and sell your home in a simultaneous transaction. This option is best for people who strongly agree with these statements.

• You are able to have concurrent closings. Ideally, you would be selling your home in the morning and closing on your future home either that day or within a few days.
• You have contingencies in your contract. It’s imperative to have a backup plan for any potential issues that could surface. The contingencies are a safety net as this transaction is susceptible to change and error that is out of your control.

Reach out to a qualified and dedicated Handsome Properties agent for further insight on your options. In all, there is no “right answer” to which buying and selling should succeed one another. However, having a trusted agent on your side to advise you will alleviate stress and create a seamless process.