by Nutan Brown
on Wednesday, March 18th, 2020 at 10:29am.
Whether you are upsizing, downsizing or just looking for a change, the question of 'should you buy first or sell first?' is a common dilemma home owner’s face. The truth is, it all depends. Each situation is unique, and there isn't a one-size-fits-all answer.
Here is a look at the pros and cons of each strategy:
Buying A Home First
Purchasing a home is often one of the biggest decisions of your life both financially and emotionally, especially if you are planning to stay in the home long term. Choosing to buy first allows you to take your time and shop around stress-free.
With fewer constraints, you can be pickier about the home you choose to purchase. If your dream home doesn't appear immediately, that's okay! You aren't committed to making a move within a certain time period.
The drawback to buying a home first is that you are on the hook of owning 2 properties until your home sells. For some people this can be highly stressful. But as long as we are in a seller’s market, and your home is in good condition and is priced correctly, it will sell.
Selling Your Home First
Selling your home is definitely the safer, more conservative approach if you are tight financially. Many aren't able to pay for 2 properties, and selling first removes the potential burden of this cost.
Once you have sold your existing home, you can shop around with confidence knowing your secure financially. You’ll also know your exact budget, and can narrow down your home search to the price range within that budget.
If you do sell first, the drawback is that there’s a possibility you'll be without a home for a period of time. You may need to rely on friends or family to house you until you find a new home. There’s also a chance you may overpay for a new home, in desperation to move sooner than later.
While there is no easy answer to buying first vs. selling first, the condition of the market and your financial situation is a great place to look when making the decision. If you are unsure which option is right for you, contact me for some professional advice. I can steer you in the right direction!