Should You Buy or Sell First When Moving?
Deciding whether to buy or sell first when moving is one of the biggest dilemmas homeowners face. Each option has its advantages and challenges, and the right choice depends on your financial situation, market conditions, and personal preferences. Here’s a breakdown to help you decide what’s best for you.
Selling First: The Safer Financial Move
Pros:
Know Your Budget: By selling first, you’ll know exactly how much you can afford for your next home.
Avoid Carrying Two Mortgages: if you can’t properly line up your completion dates, selling first prevents the financial strain of paying for two properties at once.
Stronger Negotiating Position: Without pressure to sell quickly, you can take your time to get the best price.
Cons:
Temporary Housing May Be Needed: If you don’t find a new home in time, you may need to rent or stay with family.
Market Pressure: In a fast-moving market, you may feel rushed to buy quickly, potentially settling for less than your ideal home.
Buying First: The Convenience Factor
Pros:
No Need for Temporary Housing: You can move seamlessly from your old home to your new one.
Take Your Time: You won’t feel rushed to find the perfect home.
Cons:
Financial Risk: If your current home doesn’t sell quickly, you might have to carry two mortgages or sell at a lower price.
Market Fluctuations: If the market shifts unexpectedly, you could be stuck waiting for the right buyer.
How to Decide
Evaluate the Market: In a seller’s market, selling first is often the better option. In a buyer’s market, buying first may make more sense.
Assess Your Finances: If you can afford to carry two mortgages or qualify for bridge financing, buying first might work for you.
Consult a Realtor: A professional can guide you based on current market conditions and your unique situation.
The Bottom Line
There’s no one-size-fits-all answer, but understanding your financial situation and market conditions will help you make the right choice. Whether you buy or sell first, planning ahead and working with an experienced realtor will ensure a smooth transition.
Need help navigating your next move? Let’s chat!
