Many property owners who want to trade up or move to a different neighborhood often wonder whether they should first buy their next home or sell their current one.
Although it may be a personal choice, the logical thing to do is to sell your existing property first, especially in a buyer’s market. That way, you put time and money on your side. You will not find yourself in a situation where you have to take the first offer that comes along because you have already bought your next home. And since you’re not pressed for time, you may obtain a higher sales price for your property.
Another advantage is that you will know exactly what the proceeds of the sale will be and you will be able to establish a price range for your new home. If your home doesn’t sell, then you will not be in a position where you have to move out.
Sometimes, it may be more advisable to buy first. In a seller’s market, when there are many buyers and inventory is reduced, homes usually sell within days of being put on the market. In this case, it may be best to buy first and sell second. However, there is always a risk that you may be stuck owning two properties until your first one sells.
The bottom line is that whether you buy first or sell first is a personal decision that might be influenced by a number of factors. Ask your realtor for guidance.