Welcome to one of the most tricky questions in buying and selling properties. If you’re looking to sell your home and buy again in the same area you have to be strategic about whether to buy or sell first. It’s not an easy question to answer and it looks different for each person. Here are the pros and cons for each to help you make the right decision for you.
If you buy your new home before selling your current house, you run the risk of two mortgage payments if your current house doesn’t sell quickly. Keep in mind this may affect getting a mortgage on your next home. In terms of moving, buying a home makes it easier because you know you have a place to go as soon as your house sells. Many people who buy before selling make the contract contingent on the sale of their current home. Depending on the market though, your offer may get beat out by someone else who doesn’t have a home sale contingency.
The obvious risk you run by selling your home first before buying is not finding a new home before your current home closes. If your home does sell quickly, there is a financial relief because you won’t be paying two mortgages. You also might have an easier time getting another mortgage if your current home is sold first. If you decide selling before buying is best for your family, have a back-up plan in place in case you haven’t purchased a new home before your current home closes. Make plans for a short-term rental or stay with friends and family. You might be able to make a plan with the buyers of your current house to rent it back for a short amount of time.
Understanding the pros and cons of both options will help you make the best decision for your family! There is no right or wrong answer, as both options have worked out for different people. No matter what you decide, it’s important to take your emotions out of decision making. The last thing you want to do if your current home is sold is buy a new home you aren’t crazy about just to make the timeline work. Don’t panic! On the other side, if you bought first, don’t accept an offer you normally wouldn’t just to get the home sold. Carefully consider each offer and make sure it’s acceptable and any conditions are reasonable. Years down the road, you will be happy you were still strategic with offers and choosing a new home even in a time crunch.
Need some guidance? Location Williamson can help you make the right decision for you and your family. The state of the market also plays a big role into whether you should buy or sell first. Our expert knowledge of the market in the Nashville area, the facts about your current home, and what you want to buy allows us to guide you on this next transition of life for you. Don’t make this decision alone! Call us today at 615.469.1412 or reach out online here.
A great first step is an instant home valuation. We offer a free tool to view an estimate of your home’s value. Click HERE to see for yourself then fill out the form at the bottom and let’s talk about it!