It’s hard, but you’ll have to make the decision!
One of the most common yet difficult questions of real estate – ‘What should I do first – buy or sell my property?’ The answer is – it depends!
Selling or buying, it all depends on your needs of shifting and your situations. I’ve covered all the possible situations that you can relate to, so you can choose what’s best for you.
Whatever you choose is going to give you some stress. It would take a lot of your time when you will move to a further step. So, it is better to prepare a plan. There is nothing wrong or right. Both of the options have challenges as well as benefits to choose first; all you need is to understand your circumstances and requirements.
Understand Your Needs
Reason for moving
Are you clear of why do you want to shift and looking for a new home? Is it a problem with the size of your current house? Or you want to move to a better suburb.
Make a list of things that you are expecting and also the ones with which you can compromise. Note down your concerns like where you want to buy the new home. What nearby amenities do you want? How big or small your next home should be as compared to the current one?
It’s always good to plan your finances before buy or sell your property. Have an idea of how much you are going to spend on your new home and what are your expectations from the current one. If you are unsure about the selling price, do an instant free estimate to know the current worth of your property.
Scenario 1: Buying a Home Before Selling
Buying a home before selling is equally difficult as buying your first one or maybe more than that. The positive side is you’ll have free time to search for homes and find your perfect dream home.
While you can have time by your side, finances might not be on your side. First, you would need to pay the deposit for buying the new home. If you move with buying first, you’ll have to make the double payments. This would include the utility bills and insurance, as well as engrossing the charges of two mortgage payments.
In this case, you can’t ignore any of the costs, so choosing to buy first is only beneficial if you have strong finances and could clear at the expenses at the same time.
Scenario 2: Selling Property Before Buying
In this case, you have a clear understanding of your expenses. Financial pressure mostly leads to the stress of settlement in the current property’s low offer to clear your expenses. Thus, selling the home first is a safe option regarding this consideration.
You remain in a good position to get the best price of your home when you are free from any stress of loan payments. Even if the property takes time to sell, you won’t have any pressure until to meet your expected price. On the other side, the main concern of most vendors is what would happen if they sell their home and do not get a suitable home in the transaction period. This is an obvious question – but it has possible solutions as well.
While selling, you can set some conditions of the sale so that you get some additional time to find your next home. In case the buyer is not ready to settle in your conditions, you can live in a rental home until you get a perfect home.
Final Verdict: What Should You Do?
I’d say the choice is yours! You’ve now understood both the scenarios.
The key to success is to handle the transactions wisely. There is something positive and negative in both approaches.
Since a house is a great asset of a lifetime, it is always better to take your time before deciding and being prepared for the consequences.
In maximum situations, it is always better to sell property first before you buy another. As an experienced real estate agent, knowing all the market dynamics, I’ll recommend selling first. It is risk-free and lets you achieve your goals without so much pressure.
Take advice from your local real estate agent from taking a step and find what’s going on in the market to choose the best path.