When talking About Buying Your Second Home:

Should You Sell First or Buy First?

Should you sell first or buy first? This is the age old question that stumps second-time home buyers. You have a house to sell but you want to find a place first before putting yours on the market. However, you also want to know how much you’re going to get for your home before you pick out your next location. So what is best? Let’s dive into some of the benefits of each and I’ll let you decide what works best for you! 

Selling First

Lots of home owners love the idea of putting their home on the market first before looking for a new place to go. If you decide to do this, you’ll give yourself peace of mind financially. 

That peace of mind will come from knowing exactly how much money you will get from the sale of your home. Which also means you will know exactly how much you have for your down payment. Not to mention, if your home is already sold when you find the perfect house, you won’t have to put a contingency on any offers you make. This will make you more competitive than other buyers!

If you decide to sell first, here are some things to consider: 

  • One of the disadvantages is that you might feel rushed to find a house once yours is sold. 
  • Make sure you notify buyers that all contracts are contingent upon you finding suitable housing. This will prevent you from selling your home without having a place to go.
  •  Go ahead and get preapproved with a lender so you can start shopping around for your next home. If someone makes an offer on yours, you’ll want to be ready to move on a purchase. 

Buying First

Lots of families choose to buy first because they want to make sure they have the perfect place to go before selling theirs. They don’t want to feel rushed to find a new house and make the wrong decision. 

If you decide to buy first before putting your home on the market, here are a few things to consider: 

  1. Any offer that you make will have to be contingent on the sale of your home. Meaning, that your offer could be rejected or it could get complicated with a first right of a refusal (we will discuss this more in a later post). 
  2. When you buy first, it could be nerve racking because you won’t know exactly how much money your home is going to sell for. Meaning you won’t know exactly how much you’ll have for your down payment. And ultimately, it could take longer to sell your home than you expect which could make the purchase of your dream home even more complicated. 
  3. If you find the perfect house and haven’t had time to list your home, you could apply for a bridge loan to own two houses at the same time while you’re waiting for your home to sell. There are other options as well, so talk to your lender for the best solution to this problem! 

No matter which order works for you, it’s always best to have an agent working with you during this process. Figuring out the timing and protecting yourself from all angles can get complicated!

While selling your home first is usually the safest choice, it doesn’t always work out that way. If you find the perfect home and you want to move forward on it before listing yours, I have lots of strategies to help. We can work along with your loan officer to make it as painless as possible! If you’re thinking about making a move. Let’s chat! 

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For more home buying and selling tips, check out more blog posts by clicking the link below! 

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