Three Things to Consider When Deciding Whether to Buy or Sell First
In this low-inventory market, it’s often easier to sell than buy, but many need to do both. Sellers often ask me which they should do first: buy or sell. There’s a lot to consider, and each option has its pros and cons. The right choice for you will depend on your specific situation, but let’s talk about a few things you should consider:
1. Can you afford two mortgages? If you can afford two mortgages at the same time, buying first could be the best situation for a seller. It gives you the most time to both buy a house and prepare your old home to get top dollar. However, carrying two mortgages can be expensive, and it’s not feasible for most.
2. What kind of home are you buying and where? If you are buying in a competitive market or want a home in a specific location, it might be difficult to find that house quickly after selling. You might want to consider a home equity line of credit, a bridge loan, or writing an offer contingent on your home sale. If those options won’t work for you, you might want to sell your house first.
“If you can afford two mortgages at the same time, buying first may be the best choice.”
3. Are you open to moving twice? Many sellers want to avoid this because it might not be possible based on your situation. Moving twice means you would sell your home first, live in some short-term housing, and have as much time as you need to find your next home.
Depending on your home, pricing strategy, and the competitiveness of the market, we might be able to ask the buyers for a rent-back agreement. That’s where they let you rent the house for a bit after closing. If you have the opportunity to do this, you might be able to avoid short-term housing.
If you have any questions about this topic, call or email me. Also, if you have any suggestions for future topics, be sure to send those my way. I’d love to hear from you.