As a homeowner thinking about moving, deciding if you should buy your new home, or sell your current home first is probably one of your concerns – there is no real right or wrong answer to the question as risk, finances, market condition, area, and property are all factors that come in to play. However, working with your Realtor you will be able to determine what method is best for you!
Pros: Ability to wait for the “dream home”. Less pressure for finding a house. Flexibility to wait if multiple offers are leading to higher prices. No deadline to move out. Can put a “Conditional on sale of home” clause in your offers*.
Cons: Market vulnerability on the price of your home. May not be able to sell your house right away. Risk of carrying two mortgages at once. May have to take lower selling price on your house if you run out of time.
Pros: You know exactly the amount of money you have. You can hold off on selling your home for the price you want.
Cons: Risk of not finding the right next home at the right price at the right time.
There are pros and cons to either method, it is important to speak with your Realtor to discuss which is avenue that you are most comfortable and go from there to decide. For a more in depth report visit RECOnnect Winter 2013 newsletter article.
*while having a condition on the sale of your home is a great option when buying a new home before selling your current home, sellers may be reluctant to accept this condition. Call me for more information on Conditional on Sale offers and how they work.