Should you sell before you buy?
In this hot market, should you sell before you buy?
Selling your house before you buy a new home has its pros and cons. In a seller’s market, most find it easier to have their next home locked in, knowing it will take much longer than selling. But even in a hot market, there are advantages to selling before you buy.
Pros of selling before you buy
You’ll know your price: Once you sell your house, and the proceeds are in the bank, you’ll know precisely how much house you can afford. This lets you be more strategic in shopping and choosing your next place.
Standing out in the offer pile: Having no contingency to sell your house in the offer could push you into the winning column of a bidding war. Even if your price isn’t the highest and best, the speed and convenience can win over the seller.
Paying one mortgage at a time: When there’s overlap, paying two mortgages at once can quickly drain your reserves, cash you’d rather spend on sprucing up the new place!
Cons of selling before you buy
Logistics: Selling before you buy can leave you feeling under pressure to get an accepted offer before your move-out deadline approaches. However, should you have friends and family with the space to accommodate you, that can provide you with a cushion of time to find the next place.
Moving twice: If you end up staying in a rental or with friends, that can mean moving twice, as well as tracking down temporary storage for your belongings. Unless you can afford movers, that’s more than most want to take on. |