Reasons why you should Sell before you Buy
“Should we sell first or buy first?” Homeowners who are planning to move up or downsize often wrestle with this dilemma. Although your decision depends on the current market condition and personal motivation, it is smart to sell before you buy.
Better Financial control
Selling your home before buying a new one minimizes financial risks. You would have a better idea about the house you can afford. This will help keep you from over extending your mortgage abilities. Finding temporary housing is generally cheaper than two mortgages. Moreover, if you buy first in the current market, you may end up in a cash crunch.
Better Negotiation position
Selling first provides you the luxury of time. You are not compelled to take the first offer that comes along. And free to hold out for best price. By buying first, you can end up taking less then what you could just so you can move forward on the new place.
Better Selling Price
Buyers often try to seek out desperate sellers. Sellers who aren’t under pressure to sell often obtain a better selling price.
Cash leverage
Buying before selling can lead to delays and financing issues. A contingency clause may protect you from being stuck with two homes but does not make you an attractive buyer. Having cash from the sale gives you bargaining leverage. You may also be able to negotiate price reductions.
Being without a home is the biggest fear of selling before you’ve purchased a new one. But experts agree that the advantages out-weigh the disadvantages. Selling and buying a home at the same time is a daunting task. You may find your dream home more affordable than anticipated, but selling your current home is the current market condition may not be easy.