It's time to move on. Your family has outgrown your home, you're downsizing, or maybe you're being relocated for work. Whatever the reason, our REALTORS® can help you sell your home and buy another. Buying and selling at the same time isn't always easy. But the good news is you probably learned a lot the first time you bought a house, so you can do this with the help of our real estate pros.
Expecting everything to fit perfectly just isn't realistic, so careful preparation and planning is a must. You'll want to make sure you have as much equity in your home as possible. You'll also need funds available to get your home ready to sell and cover temporary rent or other unforeseen circumstances. Decide whether you want to sell first or buy first. Know the market where you live and where you're planning to move to help you strategize.
Reasons to Sell First, Then Buy
- You'll know exactly how much you can spend on your new home.
- In a buyer's market, it may take longer than you thought to sell your home. If you've already purchased your new home that means you're paying the mortgage, utilities, insurance, and upkeep on two homes.
- You can extend the closing date to allow a reasonable amount of time for you to find a new home.
Disadvantages to Selling First
- You have to live somewhere in the meantime. There is usually some time--days, weeks, or even a couple of months--between when you close on the sale of your home and close on the purchase of your new one. You'll have to live somewhere and plus store your belongings. This can also be an issue if repairs have to be made prior to you moving in to your new home.
- If you have to rent in the interim, you're moving twice.
- It may be difficult to re-enter the market. If you end up being between houses long term, you'll need to keep your eye on the markets. If you are looking to buy in an area where there's a seller's market or home prices are rising quickly, the longer it takes you to buy a home, the less you will get for your money. If housing prices are rising faster than you can keep up, you risk getting priced out of the market.
Reasons to Buy First Then Sell
- You won't have the hassle of renting and having to move twice.
- You won't miss out on your dream home or an amazing deal. This may be the way to go if your goal is to relocate to a community where there is a seller's market or prices are rising quickly.
- If it makes sense for you, you have the option of renting out your old home or your new one. You'll want to talk with an accountant or financial advisor and lawyer to make sure you understand the details and that it's feasible for you.
Disadvantages to Buying First
- There's pressure to sell. Financially and emotionally once you've purchased a new home. This means you may end up selling your home for less than you want to.
- As a seller you're vulnerable if there is a sudden drastic market change. This is especially problematic if the home you're trying to sell is in a slow market to begin with.
Ultimately, you'll have to do what makes the most sense for you. Buying and selling at the same time can be tricky but with planning and preparation it can be done. Whether you're looking to buy or sell a home, contact Margaret Rudd & Associates, Inc. today.