You want to buy a home, but you are unsure whether you should sell your current one, or proceed and buy a new one while you stay at your old property. What should you do?
First of all, do not panic. This conundrum has been plaguing homeowners for years, and you can actually do it either way. Several personal factors come into play, such as your financial preparedness and your long-term plans. External factors such as current market conditions can also affect your decision.
Whether you choose to buy or sell first, There is still some amount of risk you are shouldering. If you sell first but can not find a new home to move into, you risk being homeless. This can hurt your finances, as you will possibly need to rent or move in with a friend or a family member. On the flipside, waiting to sell while you buy a new home can bring you the burden of having two mortgages.
The bottom line is the decision entirely depends on your situation. If you still can not make up your mind, I have listed some of the pros both for buying first and selling first.
Pros of buying a home first
- You avoid the problem of being temporarily homeless, as you can still live in your current property. This gives you some degree of flexibility as you do not have to worry about impending expenses brought about if you sell your home first and you are renting a place somewhere.
- If you are planning on having a home built – one That is built to your exact specifications – buying first is preferable. It takes a longer period of time to have a home completed, and there will always be delays in schedules one way or another. This also gives you plenty of time to sell your home.
Pros of selling your home first
- A lot of real estate professionals think it is more practical to sell your home first and then buy. It is been widely accepted that having sold your home, you do not have extra baggage which will play to your benefit during negotiations.
- You will not have to deal with self-imposed deadlines if you choose to sell your home first. Buying a home first, you might feel a bit pressured to make the first deal that comes along work when it is finally time to sell your current digs.
- Sellers will prefer your offer, as most are more likely to sell to a home buyer who is not holding on to his or her current home. Having another home on the side gives sellers the impression that you are not a solid buyer, and sellers, if anything, hate taking their homes off the market for an unsure buyer.
Whether holding on to your current home and buying a new property first or choosing the other path, each has its advantages and disadvantages. Aside from personal circumstances, local market trends can also come into play and affect your decision. If You would like more advice regarding this matter, do not hesitate to get in touch with me today at 760 622 5087 or click here.