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The most common question in real estate is—should I buy or sell my home first?
There are so many factors in the home buying and selling process that there isn’t an easy answer to this question, other than it depends on the client.
So when should you buy first?
If you are planning to buy a home before selling, you should consider a few things: the carrying costs of two houses, when will your current home sell, and is it the right time to find the perfect home or one that might check only a few boxes?
Buying a home first allows you to choose a home that checks all the boxes and gives you ample time to look at many options before buying. You won’t have to feel the time crunch between selling your home and finding another place fast.
If the market is ideal for sellers, competing with other buyers to secure a property or even having to overpay for a home is common. You might even need to make multiple offers on several houses before getting your offer accepted.
While buying first has some advantages, it might not be financially feasible for many people. It is possible to add the sale of home condition to the offer, but competing offers without that condition will likely win out over yours.
Buyers should consult their lender first to discuss interim financing to be able to buy a home without having to add the sale of home condition to the offer. Doing so will allow more options in the home buying process.
So then, should you sell first?
If you can’t bear the financial burden of carrying two mortgages, then selling first is your best option.
Selling first allows you to get the most money for your home. Needing to lower the price of your home for a quick panic sale is less than ideal. You can negotiate a better price with more time.
Regardless of your choice, home buying and selling is always stressful, and it can be a gamble either way. Hopefully, this handy guide will help you choose the best decision for buying or selling a home first.
Contact your Local REALTOR® to guide you through the home buying and selling process and which option is best for you.
