Three questions to ask yourself to know if you should buy or sell first.
Should you buy or sell your current home first? I get this question for many sellers, and 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.
Deciding which one to complete first comes down to several factors. Each route comes with pros and cons, but the right option for you depends on your particular situation. If you need to sell your home and buy a new one, here are three key questions that you should consider before starting the process:
1. Can you afford two mortgages? Qualifying for two mortgages at once is difficult and can add a lot of stress to your situation. If you carry both payments for a few months, you’ll have plenty of time to find a new home while also preparing your current property to sell for top dollar.
“The right option for you depends on your particular situation.”
2. What type of home are you buying? If you have a specific neighborhood or school district that 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 take out a home equity line of credit. It might seem worth it to secure your dream home if you have a specific wish list.
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 to fund your subsequent purchase, you may have to find temporary housing while you search for your next property.
This is a tricky dilemma, but my team and I can help you through it. Contact us anytime through phone call or email. We’d love to hear from you!
