Sell First or Buy First?

Whether you are planning your first move to a larger home or you’re an experienced real estate veteran, coordinating a real estate move is an art. The first piece of the puzzle is to consider when to buy in conjunction with when to sell. Here are a few choices that will need to be discussed at length when we meet:

Buy first. The positive side to this approach is that you don’t put your home up for sale until you are absolutely ready. The disadvantage is that you buy “contingent” on the sale of your home, which makes you a less desirable buyer. In the long run you may pay more, find the sellers less flexible and even find yourself losing the home you really want. One aspect gives you peace of mind while the others may involve risks.

Sell first. The positive side to selling your home before you buy is that you buy from strength at what is usually a better price and terms while decreasing the risk of losing the home you really want. You also have the advantage of knowing the exact price you received. The disadvantage is that you may feel pressured to buy too quickly knowing that your home is sold. You may want to view the market in general to assess that what you are ultimately looking for actually exists (in general). But the actual buying decision would be delayed. This can be unsettling for many and may not suit your needs.

Interim financing. By getting approved for interim financing you can buy when you are ready and sell without panic. The disadvantage is the potential of carrying extra financing costs. You also have to qualify to carry the extra financing. Again, some rewards and some risks.