Should I Sell or Buy First and Why?Posted by Kevin Hughes on Wednesday, March 13th, 2013 at 5:06pm.
One of the biggest choices faced by homeowners is whether to buy or sell first. It's impossible to say definitively which one is better because everyone's situation is different, but regardless, it's important to carefully consider this decision so you don't end up with negative consequences. Your experienced Hughes' Group Realtor will be an essential resource to help you decide whether you should buy or sell first and here are some pros and cons for each side to start your wheels turning:
The main reason people decide to buy first is so they won't be left without a home. If you don't have a place you can temporarily stay in, this is probably a good option. Another big reason to buy first is if the market is hot, you're likely to encounter competition when looking for houses, so if you find the perfect house but wait too long to make an offer because your house hasn't sold yet, you risk someone else buying that home. You are much more free to act on great homes and deals today if you aren't held back by selling your home. Yet, the negative side to buying first is you may end up having to make payments on both houses. It's also dangerous to become too desperate to sell because you will end up getting far less money than you would have if you weren't rushing the selling process. If you get stuck in this situation, you could look into renting your house, but renting has some disadvantages as well. Work together with your Hughes' Group realtor to find a solution.
By selling first, you lose a lot of the financial stress involved in buying. Having the money from the sale will help you with your budget and knowing how much you can afford to spend on a new home. Also, because you aren't desperate to sell, you can take time with negotiations to agree on a price you deserve. The big risk with selling first, however, is if you can't find a new house soon enough, you end up homeless. If you do decide to sell first, you should have a plan of what to do in this situation. Some options are renting a place or moving in with a friend or family member while you continue to look for a house. The problem with this is you now have to move twice. Also, you could end up rushing your new home search, and you could end up with a house that isn't ideal. Another thing you could do is ask for a longer period before closing. Instead of the typical 60-day period, try negotiating a 90-day period.
Deciding whether you should buy or sell first is a game of risk. However, there is a good chance you won't face a lot of these problems, so whichever choice you pick, you're likely to buy and sell your home with nothing but a few little speed bumps. There are additional options available like making the purchase of a home contingent on the sale of your home--a solution is possible. Looking at your own personal situation will help you know whether you should buy or sell first. This and other similarly difficult decisions are the reason why you need a professional to navigate the exciting, yet challenging real estate world.
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