Should You Sell Your Home or Buy a New One First?

Should I Buy or Sell My Home First?

Are you a homeowner that wants to buy a new house, but need to sell your home first? This is a common predicament many people find themselves in. In this article, we’ll discuss whether you should sell your home first before buying, or vice versa!

You may have questions like: Should you sell your home first and live in uncertainty until you get a new home bought? Or should you attempt to buy a new home first and hope that you will be able to sell your old home quickly? These are a couple of the questions that we plan to answer for you in this article.

Should I Buy or Sell My Home First?

The recommendation of whether to buy or sell your house first boils down to the type of market conditions being experienced. If you’re in a seller’s market, it’s recommended that you buy a home first. In a buyer’s market, it’s a good idea to sell your home first before buying.

The rational is that when you’re experiencing a seller’s market, buying a home is more competitive and therefore, it can take longer to buy a house than sell. If your home sells before you can get an offer accepted, then you’ll need to quickly figure out a plan so you’re not homeless.

During a buyer’s market, it can be more difficult to sell your home. The number of listings on the market is high and homes don’t sell as fast. Therefore, you should get your home sold before buying, so you don’t end up with two mortgage payments.

There’s always the option of buying and selling at the same time. However, this is a more complicated process that requires great timing, attention to detail and a good real estate agent.

Pros and Cons of Buying Before Selling

Want to know more about buying a home before selling? Here are the advantages and disadvantages of buying before selling:

Pros of Buying First     

  • You are assured to have a home lined up to move into.
  • You can move faster, which is great for a new job or kids in school.
  • Once you find the right home there’s nothing stopping you from buying!

Cons of Buying First

  • If your home doesn’t sell, you will have two house payments.
  • Not having extra money from your home sale for the next down payment.
  • You become a motivated seller, which may put you at a disadvantage selling in a weak market.

Pros and Cons of Selling Before Buying

Thinking about selling your house before buying the next one? Here are the advantages and disadvantages of selling before buying:

Pros of Selling First

  • Once you sell, you’re not at risk of having two mortgage payments.
  • Selling your house will give you additional funds for a home purchase.
  • You don’t need to take a low-ball offer or be pressured to sell at a lower price.

Cons of Selling First

  • If you can’t find a house to buy, you won’t have a place of your own to live. You may have to rent a home or temporarily live with family or friends.
  • You may feel pressure to overpay for a house or buy one you’re not in love with, just so you have a place to live.
  • You’ll likely have to move twice, which can be a pain and an additional expense. 

Is It Risky to Buy a House Before Selling?

In a hot seller’s market like we’re experiencing in 2022, it’s not as risky to buy a house before selling your current home. The reason being is that homes are selling fast, and sellers are typically getting full asking price.

Is it Better to Sell the House Before Buying?

If you don’t want the risk of having two mortgage payments or need money for the next down payment, it’s better to sell your home before buying.

Buy or Sell My Home First?

In this article, we’ve looked at your options of whether it’s best to buy a house before selling your current home, or if you should sell your home before buying a new home. Ultimately, the choice is yours depending on your needs, timeline and the real estate market. 

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