Should You Buy a New Home Before Selling Your Current One?
- There’s no wrong answer when it comes to the order of buying and selling
- Keep in mind the pros and cons of each option before making a decision
- Contact us when you know how you’re handling the purchase or sale of your home
Whether you buy your new home before selling your old is the real estate industry’s equivalent of “Which came first, the chicken or the egg?” At first thought, you believe there’s an obvious answer. And then you start to really break things down. Thankfully, we don’t have to deal with any science, and a good list of pros and cons can guide you to the answer that fits your scenario.
What you’ll find is that it may come down to personal preference, but there are a few things you should take into consideration. If you’re in the market for a new home and need to list your current one, here are some pros and cons of both buying first, then selling and selling first, then buying.
Pros of Selling Before Buying Your Home
This may seem like the most logical option. You don’t have to carry two mortgages or pay utilities on two homes, and you can access the equity of your old home for the downpayment on the new one. But there are more benefits to selling your home first, in case neither of those perks apply.
You Can Better Stage Your Home
If you’re still living in the home you’re listing, you can use your furniture and some of your decor for staging. If you’ve ever walked into an empty home, it can feel cold and uninviting. But don’t crowd the space with furniture, and leave only minimal decor behind to make the space homey and warm.
Increase Your Purchase Offer
The word “contingent” isn’t a wonderful one in the real estate industry. If you’re trying to sell your home and the purchase of your new space is contingent on the property being sold, your offer may be less appealing. When you sell first, you have the money in hand and nothing holding up the deal.
Take Your Time
When you sell first, you can take your time. There’s no other home waiting for you and no contingencies on the sale. Being able to take it slow means you can be a little pickier with your offers.
No Question of Final Profit
When you sell and buy at the same time, there’s always a concern that you won’t walk away with what you expect from the sale. What if there’s a last-minute repair? What if you just don’t get what you were looking for? These things can really hinder your purchase, so it’s a perk to not have to think about it.
Cons of Selling Before Buying Your Home
Alternatively, selling before buying has some disadvantages. Chief among them are these three issues that can complicate matters a little.
You Will Need Temporary Housing…
When you sell your home, where will you live? With no new home to move into, you need to secure temporary lodging. Do you need a short-term rental or will you move in with a family member? Neither is ideal for any decent amount of time.
…But How Temporary Will It Be?
What if the purchase of your new home takes longer than expected? You can burn through some of your profits or strain relationships if things don’t go as planned. Month-to-month rentals aren’t secure as you can be asked to leave at any time and they are costly, so you have to time everything just right and hope it goes smoothly.
You’ll Be Adding an Additional Move
No matter how you organize things, you’re going to be moving twice. Even if most of your belongings go into storage and you keep only the necessities, you’re still unpacking and repacking your everyday items and transporting your stored effects to your new home. Moving can be a costly and tiresome endeavor, especially if you have to do it twice.
Pros of Buying Before Selling
If you have the option to purchase your new home before selling your old one, it may seem like the route to go. There are a few reasons why this is an ideal scenario, such as the following pros.
More Time to Find Your Dream Home
With a secure space to call home, you have more time to locate your new dream home. There’s no one pressuring you or chipping away at your bank account, and you don’t have to completely rearrange your schedule to make showings work.
You’re In Complete Control
As previously mentioned, you have nothing pushing you out of your home. This gives you complete control over your moving timeline. You can take your time to ensure everything is properly organized and safely packed.
Selling an Occupied Home Can Be a Hassle
When you’re trying to live in your home, it can be a nuisance to have to schedule showings and stage it properly. Larger families may find staging to be the biggest obstacle, especially if things have accumulated over the years. Some showings can also be scheduled last minute, meaning you’re having to rush out of the house. If you buy first, you’re already out of the house.
Only One Move
Since you won’t need temporary housing, your first and only move from the house you’re putting up for sale is to the house you purchased.
Cons of Buying Before Selling
Should you jump into buying your new home before you even list your current abode? We’ve covered the pros, but don’t forget to consider some of these reasons why you should maybe hold off.
It’s an Added Financial Strain
When you own two homes, chances are you have two mortgages. You’ll also need to keep utilities running in the home you’re selling. Then there are taxes, insurance, and any upkeep you may have to do while you still own the house you’re leaving.
You Have to Watch Over Two Homes
You don’t want to leave the home you’re selling unoccupied for long. It should be kept clean so prospective buyers are seeing a comfortable space and not something that’s been sitting for some time. The added work of performing upkeep and watching over two homes can take some time out of your week.
No Matter the Order, Call Us Today
It doesn’t matter to us whether you buy or sell first, so long as you end up with the resolution you were seeking. Give us a call today so we can help you decide which best suits your situation and needs. Once we know what’s best for you, we’ll either find your new home or set a valuation for the home you’re selling.