People ask me this all the time!
Should I list my property first or buy my new home first? Let’s take a look at both options.
If you attempt to buy a property before listing your home, you run into a couple of challenges.
First, sellers may not take you seriously as a potential buyer. After all, you haven’t put your own home up for sale. As far as they’re concerned, you might merely be testing the market.
Second, your property might not sell as quickly as you thought it would. Also, if there is an early closing date on the home you purchased, you might end up owning, and paying a mortgage on both properties, at least until your home sells. Most people do not want and can't take the chance of carrying two mortgages!
If, on the other hand, you list your property before buying a new home, sellers will know you’re serious. That puts you in a competitive position in the event of multiple offers.
Also, if your home sells quickly, you’ll have the peace-of-mind of knowing exactly how much of a new home you can afford. You’ll be able to shop with confidence!
Of course, like the first option, there is a chance that the closing dates won’t match and you’ll end up owning two properties for a period of time or that you're moving in with family or even end up having to rent for the interm....
However, there are solutions available such as bridge financing.
There is no perfect answer, it's what you decide and what you feel is best for you. A lot depends on the state of the local market.
If you're not sure what to do, or what state the market is in, talk to me! I can provide you with a market update, do an evaluation on your home and help you decide which is the best move for you based on todays market!