There are three questions to ask yourself when buying and selling.
Should I sell my current home before I buy the new one? In today’s real estate market, low inventory and high demand are dominating the conversation. It’s easy to sell, but it’s much harder to buy. Many homeowners are in a position where they need to complete both transactions in a short period of time. Deciding which one to do first comes down to several factors. Each route comes with pros and cons, but the right option for you depends on your particular situation. So if you need to sell your home and buy a new one, here are three key questions that you should really consider before starting the process:
1. Can you afford two mortgages? Most people choose the buy first and then sell option. However, qualifying for two mortgages at once can be difficult and add a lot of stress to your situation. If you can carry both payments for a few months, then you have plenty of time to find your new home while also preparing your current property to sell for top dollar.
2. What type of home are you buying? If you want to be in a particular neighborhood or a school district you’re targeting, you can’t always afford to sell first. From a timing perspective, you might need to make a contingent offer, use a bridge loan, or you can take out a home equity line of credit. It might be worth it to secure your dream home. If you don’t know or don’t have a particular wish list for your next home, selling first might make more sense for a multitude of reasons.
“In today’s real estate market, low inventory and high demand are dominating the conversation.”
3. Do you want to move twice? Most people don’t, but you might not have a choice if you need the money from your home sale to fund your next purchase. You may have to find temporary housing while you search for the next property. With rent on the rise due to inflation, that’s not always the wisest move. On the other hand, depending on how high demand is in your price range, you may be able to negotiate a rent back or a leaseback agreement with the buyer who purchased your home and potentially avoid the dreaded double move.
I’ve helped many clients in this situation, and I’d be happy to help you understand which option best fits your situation. There is more than one way to sell before you buy, and vice versa. If you have any questions about this particular situation or real estate in general, don’t hesitate to reach out via my phone number or email.
