Should You Buy or Sell First?
Many homeowners struggle when the time comes on whether to buy another house before selling their current home or to sell before purchasing their next home. There is no definite answer on what is the right way because personal circumstances are different for everyone and they can weigh heavily on the best method of approach. Both approaches have advantages and disadvantages and you should carefully evaluate the situation before making a final decision.
When you sell first, you can relieve the stress and financial burden of making a double mortgage payment. You also know the price range when looking to by based on the net gain from the sale of the home. This allows you to carefully explore the various housing options that are available in you price range. In a market where there is a surplus of homes and few buyers, many people prefer to sell first. If you’re planning on selling and buying at the same time, aim for a closing date for the sale of the current home right before the sale of the new home.
One of the downsides of selling first is that your new desired home many not be available causing you to resort to costly and inconvenient short-term living arranges and a double move.
Buying first lets you know where you’re going to live and when you can move. This works for homeowners you can carry two mortgages and also have the money for a down payment and closing costs. If you would prefer to buy before selling your current home, but don’t necessarily have the down payment funds at quick access, you have the option of doing a bridge loan. A bridge loan is where the equity in your current home is pulled out in order to supply the down payment for the next home purchase. The downside of buying first is the risk of having to make two mortgage payments due to not selling quickly or having to comprise on your asking price to try to sell quicker.
This still may be a good option for families with children that prefer a particular school district. This would allow them to buy a new home and start the school year in the new district and not have to worry about moving halfway during the school year.
Along with your personal budget, there are many factors to consider when making a decision or whether to buy first or sell. Market conditions; your personal circumstances and demand for homes are just a few of those other factors. Call me today for 5 other factors and we can work together to determine what is in your best interest.
Lexington KY is always #1 in my book! Whether you want to buy a downtown condo, a custom walkout ranch on a golf course, or a horse farm in the country, I can help find the perfect home for you – as well as help you sell your home. In addition to Lexington Real Estate, I specialize in the nearby towns of Paris, Midway, Georgetown, and Versailles.