If you already own a home, the decision of whether to find a new home first or to sell your current home first can be stressful. The best answer to this question is; "It depends".
People have a tendency to want to find a home first because they are afraid their home will sell too fast and they won't have anywhere to go. This thinking can put them at a disadvantage for a number of reasons:
- In a Sellers market, home sellers will not usually accept an offer that is conditional on the sale of another home. So unless you want to put in a "firm" offer and take the chance that yours will sell for what you need to buy the next one, you may lose out on the home you find that you really want. Be very cautious doing this because you could find yourself carrying two homes!
- Putting in an "SPP" offer (conditional on the sale of the purchaser's property) can cost the buyer thousands extra. First, a buyer with an SPP offer is expected to put in a higher dollar amount on their offer as a way to compensate for the risk that the backup property won't sell, even in a good market. Plus, the buyer may now feel under pressure to put a lower listing price on their home to sell it fast.
Having your home on the market and being ready to sell is usually the best option in a market where homes are selling quickly.
If you really aren't comfortable selling your current home before finding another there is a way to make sure this doesn't happen. Call your REALTOR® for a no obligation consultation. We can help you with your real estate goals.