This is a common question that we get asked all the time It’s a tough decision that most home owners will be faced with at some point and there’s really no right or wrong answer.
Thinking of buying first?
Pros: If you decide to buy a house before you sell you’ll benefit from not having the pressure of a looming closing date creeping up translating into a more enjoyable experience searching for your next home.
Cons: If you find the perfect home and buy it before you sell your current home you’ll be faced with more uncertainty of how much your current home will sell for as well as when it will close. If your house fails to sell as quickly as you thought you could end up owning 2 homes which can be pricey - paying double mortgages, taxes and all the other costs that come with home ownership. If you decide that buying is best for you then make sure that you’re financially capable of carrying 2 homes. There is an option of making your offer on your next home conditional on the sale of your current property but if it’s a sellers market and homes are moving fast chances are most sellers will go with an offer with more certainty versus one with a sale of property condition.
Planning to sell first?
Pros: If you decide to sell before you buy you’ll benefit from knowing exactly what you’ll be netting when your out looking at homes. Selling first also eliminates the risk of owning 2 homes.
Cons: The downside of selling first is that you’ll have an imminent closing date which can add stress to the buying process making it less enjoyable and potentially having you settle for a less than perfect house because you’re in panic mode of not having anywhere to live. The current market conditions will play a large factor in your decision making, if it’s a buyers market selling first would be a good idea because you’ll be more confident on the buying end. Alternatively if it’s a sellers market selling should be easy so buying first may be the best choice.
It all comes down to you and your unique situation, we as real estate professionals can guide you, giving you all the pros and cons so you can make an informed decision on what's best for you and of course we can offer some strategies to ensure you’re not stuck owning 2 homes. Whether you decide to buy first or sell first it’s a good idea to have a contingency plan such as a short term rental, storage pods, moving in with family temporarily, bridge financing, etc. It’s always smart to have a plan in place for any unexpected situation that could arise.