When it's time to sell your house and look for a new one, one of the biggest questions that enter homeowner's minds is whether they should sell their current home before buying a new one, or buy and then sell.
This can be a tough decision, as there are pros and cons to both. When selling the current home first, the homeowners place themselves in a better position to actually sell their home.
This is because they will not be as anxious to sell and so, they can hold out for a better price. There is little need for a quick sale and so the homeowner will make more money.
But selling your home first also places the homeowner in a better position once they sell their home and are looking to buy.
This is because sellers generally prefer to sell to buyers that have few conditions attached to their offer. A condition to sell their current home first is often scary for sellers, as no one can be sure as to when that will happen.
This can also save the buyer money. Sellers will generally sell their property for a lower price to those that have sold their home rather than those that still have property to sell.
Selling the current home first will also help keep the buyer within their budget, as they already have the money from the sale of their home and know exactly how much they have to spend.
One of the major risks homeowners take when they sell first is that they cannot find a new home to buy. This can be very frustrating because people don't often wish to sell their home so that they can move into a rental temporarily.
If the market is hot, prices may be very high and so finding a new home that one can afford can become increasingly difficult.
However, if the market is slow, finding a new home could be easier than ever.
One way to avoid both of these situations is to write a condition into any offer.
If you're selling first, it may be on the condition that you can find a home to buy before closing. If you're buying first, you may want to consider writing in that it's on the condition that you sell your home first.
What homeowners decide depends entirely on their own situation and what the market is doing at the time.
Unfortunately, there is no right or wrong answer and either way, it can be a risk.
