So you’ve decided to take the leap and move. Having already made this huge decision, you’re now faced with an even bigger one. You’re no doubt wondering, should you buy or sell your house first?
It’s a tough choice and there are definitely benefits of both scenarios. It all comes down to your unique situation. Some factors that will come into play include what kind of property you are looking to buy, how easy it will be to sell your property, and your current financial situation.
In this post we’ll explore these factors and more to help you decide which route you should go. Let’s jump in!
Should You Buy Or Sell Your House First?
As mentioned, there are benefits to both options. Let’s take a look at them:
Benefits of Buying First
- You get to lock down your dream home and you know exactly where you’re going to move once you sell.
- You’ll know your closing date for your new property so you can coordinate the closing date for your existing property to coincide.
- While you’re house-hunting, you don’t have the pressure of a looming closing date. You don’t have to settle and take the time to find the perfect property.
- If you’re in a ‘hot sellers market,’ you have the luxury of taking your time as it will be easy to sell your house once the time comes.
Benefits of Selling First
- You know exactly how much you have to spend on your new property.
- You’re not going to be caught carrying mortgages on two properties. Although, you may have to find temporary living accommodation if you sell first and haven’t yet found your dream home.
- This option generally offers far more peace of mind. This is what makes it a common choice in a more balanced market like we have today.
Questions to Ask Yourself
Here are some questions you should ask yourself when you’re trying to decide should I buy or sell first:
- Can you afford to carry two mortgages for a period? If you can’t sell your home before you close on your new property, you may end up having to carry two mortgages for a while. For many people, this is simply not an option. Take a good look at your financial situation and determine if this is a risk you can take.
- How difficult will it be to find your dream home? If you’re looking for a unique property that rarely comes on the market, you may have to buy it when it becomes available or run the risk that you won’t see another one for a long time. If there’s tons of inventory of the type of home you are looking to purchase, you may lean towards selling first.
- How fast do you think your property will sell? If you’re sitting on a ‘hot property’ that’s likely to sell within a few days, then you might feel comfortable buying first. If you have a house that might not sell quickly, then you are probably safer to sell first. You can get a good idea of how long it will take by looking at recently sold homes in your neighborhood and price range.
Do you need help deciding should you buy or sell your house first? We would be happy to help you determine what is the best approach to suit your specific needs. As always, your ThompsonSells team is here to help every step of the way!
It All Starts With A Little Guidance
Let us help by guiding you through the buying and selling process. We’ll ensure you get the right price for your existing property and find your dream home for the right price too!