Should You Sell Your Current Home Before You Buy?

Perhaps your family has grown in size or maybe you’d like to move closer to work—either way, the prospect of selling your home and finding a new one may leave you wondering whether you should sell your current home before buying or close on a new property first.

Generally speaking, while this presents a difficult choice for many buyers, it tends to go without saying that very few buyers can afford to purchase a new home before they’ve sold theirs. Still, there’s something to be said for personality because it often plays a large role in how buyers deal with such uncertainty. On the one hand, many people like to know where they will be living before they can sell their current residence, while others want to be certain that their present home will sell before stepping into something new.

For the most part, a lot of markets tend to favor buyers who have cash in hand because it places them in a better negotiating position, especially when facing competition from other offers. However, since current market dynamics tend to play a huge role in deciding whether buying or selling first is the right option, it’s important to speak with an experienced Realtor who is familiar with the conditions in your area. If you’re in a buyer’s market, it’s often possible to make an offer on a new home that’s contingent upon the sale of an existing home, but seller’s markets make these types of compromises rather unlikely.

In the end, regardless of the current market, it’s generally wise to do your homework in advance. In addition to speaking with a real estate agent, you might also want to consider meeting with a mortgage officer who can help you determine what size home will work within your budget. Once you know what you can afford, you can begin taking stock of your targeted neighborhood and see what’s available. If you don’t find anything suitable, you may want to question whether selling at the current moment is the best option; however, if you come across several properties which will meet your needs, then you can put your house up for sale with the peace of mind that you’ll likely find something to buy.

Still, if you finally decide to sell your home before buying something new, it’s important to understand that you will need to consider the option of temporary housing while you look for your next home. This can obviously be a problem for a lot of people; however, if you’re not in a huge hurry, you may even want to consider seeing if the new buyers will consider renting your old home to you for a few months. Clearly, not all buyers will be into such an arrangement, but for an additional financial incentive or the guarantee that their offer will be chosen, they may consider allowing you time to find someplace new.

If you’re contemplating a move but you’re not sure where to begin, I’d love to help you along the way.

Pamela Evans | Hello Pam Evans Real Estate | www.hellopamevans.com | 678-778-6551