Should You Buy Before You Sell, or Sell Before You Buy?
Making the decision to move homes often comes with the dilemma of whether to buy a new home before selling your current one, or to sell first and then purchase. Each approach has its own set of advantages and challenges, making it crucial to weigh your options based on your unique circumstances. Here’s a closer look at the pros and cons of both strategies:
Selling First
Pros:
1. Clear Budget for Next Home: Selling your current home before buying a new one provides a clear financial picture. Knowing exactly how much money you have from the sale can help you set a realistic budget for your next property. This can also give you an advantage as a buyer, especially if you sell for more than expected and have additional funds to invest in your next home or use for negotiating a better deal.
2. Stronger Position as a Buyer: Having the proceeds from your home sale in hand can make you a more attractive buyer to sellers. You won’t have the contingency of needing to sell your home first, which can speed up the buying process and potentially give you leverage in negotiations.
Cons:
1. Timing Pressure: Selling your home first means you might need to find temporary housing or move twice if you haven’t secured your new home yet. This can create added stress and logistical challenges, especially if your ideal new home isn’t immediately available.
2. Market Conditions: If the market is competitive and homes are selling quickly, you may feel rushed to find a new home after selling yours. This could lead to making hasty decisions or settling for a property that isn’t ideal.
Buying First
Pros:
1. Certainty in Moving Plans: Purchasing a new home before selling your current one gives you the peace of mind of knowing where you will move next. This can reduce uncertainty and streamline the moving process, especially if you have specific criteria for your new home.
2. Flexibility in Selling: You can take your time to prepare your current home for sale and wait for the right market conditions. This can potentially lead to a higher sale price and better terms, as you are not under pressure to sell quickly.
Cons:
1. Financial Risk: Buying a new home before selling your current one means you’ll likely need to qualify for a new mortgage while still owning your existing home. This can strain your finances if you don’t have sufficient liquidity or if your current home takes longer to sell than anticipated.
2. Contingency Offers:/Subject to Sale Making an offer on a new home contingent upon selling your current one can make your offer less attractive to sellers, especially in competitive markets where non-contingent offers are preferred.
Ultimately, whether you choose to buy before you sell or sell before you buy depends on your financial situation, local market conditions, and personal preferences. If you prioritise financial stability and a stronger negotiating position as a buyer, selling your home first may be the better option. On the other hand, if you value certainty in your moving plans and have the financial means to manage multiple properties temporarily, buying first might be more suitable. Whichever route you choose, careful planning and consultation with real estate professionals can help you navigate the process smoothly and make the best decision for your circumstances.
If you would like to discuss your next move reach out to our team today to discuss today.