Consider these four things when deciding to sell before buying.
Trying to sell your home and buy a new one can be a daunting task, and one of the biggest questions that homeowners face is whether they should sell their current home before buying another one. It’s a classic chicken versus the egg scenario, and there are pros and cons to both options. Here are a few things to consider when deciding to sell before buying.
1. Get preapproved for a mortgage and see what you’re qualified for. This will help you understand your financial situation and whether you are able to purchase another home without having your current one sold or leased. If you’re not qualified, then it’s clear that you need to do something with your current home before buying another one.
2. Speak with your local real estate agent and come up with a game plan. This is important because quite often people are looking to sell their home, but they don’t have a place to go to yet, or they’re looking to buy a home, but they haven’t figured out what to do with their current home. Having a solid plan in place will make the process smoother and less stressful.
“Weigh the cost and convenience of each option and decide what’s most important to you.”
3. Learn the different options available to you. There’s the traditional way of selling your home, but there are also alternative methods that can help in this process. For example, you can get cash offers on your home or use programs that let you buy before you sell, which allows you to become a non-contingent buyer and tap into the equity you have in your current home. It’s important to know what options are available to you and choose the one that works best for your situation.
4. Understand the cost versus convenience factor. While we all want to sell our home at the maximum dollar and buy the next home at the lowest possible dollar and move once, this isn’t always possible. Getting the maximum dollar for your home may cause you some inconvenience in terms of having to move twice. On the other hand, you may have to purchase your new home without having your current one sold, which could increase the cost on the other side. You need to weigh the cost and convenience of each option and decide what’s most important to you.
Remember, there’s no one-size-fits-all solution, and you need to choose the option that works best for your specific situation. If you have questions about this topic or need help with your real estate plans, call or email me. I’m always happy to help.
