1 minute read.
Whether you are buying or selling a home, it can be a stressful experience. There are many decisions to make, items to consider, and terms to learn. But what happens when you want to sell and buy a home at the same time? Should you buy or sell your house first?
Let’s take a closer look at the pros and cons of buying or selling your home first.
Buying a House First
If you only want to move once, you are not in a time crunch, and you want to take your time to find the perfect house, then buying a house first is ideal.
This option also comes with many drawbacks. For many individuals, you may not be able to acquire the financing to pay for the home. Or, you may not qualify for the incredible rate that you would have gotten if you had sold your home first. While you can always place a contingency offer on a house, saying that you will purchase the house once your current property sells can hurt your chances of an offer being accepted, particularly if other offers have been placed on the home.
Selling a House First
In many cases, selling your home first is the smartest and safest option when selling a home. This is because you place yourself in a stronger financial situation to receive the financing you need to purchase the home and you do not run the risk of paying for two mortgages at once — which can often put you in a tight financial situation.
Additionally, when you focus on selling your home before purchasing another, you can put more attention into your current property. This gives you the time to make the upgrades, repairs, and stage the property so that you can increase your home value and receive higher asking prices.
However, when selling your house first, you can run into many timing concerns. For example, you may need to move out of your home before you can move into another, causing you to move twice and to search for a place to live for a few short weeks. Additionally, you may find that you have less time to find your dream home, adding more pressure and stress to finding the perfect place to live.
When determining whether to purchase or sell your home first, you must look at your specific situation. If you have the time and the money to do so, buying a property first may be ideal. However, if you are in a time crunch or you want to place yourself in a stronger and more secure financial situation, selling a home should be at the top of your to-do list.