Main Content

Buy Or Sell Your Home First? Pros and Cons to Consider

Buy Or Sell Your Home First? Pros and Cons to Consider

Are you considering buying a new home while still owning your current one? Or perhaps selling your current home before buying a new one? It can be a challenging decision to make, but with careful consideration of the pros and cons of each approach, you can make an informed decision that suits your circumstances.

Here are some of the critical factors to consider when deciding whether to buy or sell your home first:

Pros of Buying a Home First:

  1. You have a new home to move into immediately, which can alleviate the stress of finding temporary housing or renting.
  2. You have more time to find the perfect home without worrying about the time pressure of selling your home.
  3. You may benefit from current market trends, which could mean buying a home at a lower price or with more favourable mortgage terms.

Cons of Buying a Home First:

  1. You may have to carry two mortgages simultaneously, which can be financially stressful.
  2. You may be required to make a larger down payment or take on more debt to secure your new home.
  3. You may face difficulties getting a mortgage approval, as lenders may consider your debt-to-income ratio and assets available for down payment.

 

>>>> Watch Us On YouTube
 >>>> Follow Us On Instagram
 >>>> Find Us On Facebook
MORE BLOG POSTS HERE >>>>Elevate Blog

Pros of Selling a Home First:

  1. You have the funds from the sale to use as a down payment on a new home, which can reduce your mortgage payments and help secure a better interest rate.
  2. You have a better idea of your budget and can confidently search for homes that fit your financial situation.
  3. You may be able to negotiate better terms for selling your home, such as a higher sale price or more favourable closing costs.

Cons of Selling a Home First:

  1. You may have to find temporary housing or rent while searching for a new home, which can be stressful and costly.
  2. You may feel pressured to make a hasty decision when buying your new home.
  3. You may lose out on current market trends, such as lower interest rates or more favourable prices.

Other Considerations:

  1. Timing: It’s essential to consider the timing of both transactions and plan accordingly. Tell your real estate agent about market trends and the best time to buy or sell.
  2. Contingency: You can include a contingency clause in your purchase contract that allows you to back out if you cannot sell your current home in time. This can help protect you from carrying two mortgages.
  3. Bridge Loan: A bridge loan can help bridge the gap between selling your current home and buying a new one. However, they can be costly and may require a high credit score and significant equity in your current home.
  4. Financial Stability: Consider your financial situation and whether carrying two mortgages or taking on additional debt is feasible.
  5. Moving: Moving is stressful, so consider whether buying or selling first will reduce your overall stress and make the process smoother.
  6. Renting: If you sell your home first and cannot find a new home immediately, consider renting temporarily to alleviate the pressure.

In conclusion

There are pros and cons to both buying and selling your home first. The decision ultimately depends on your individual circumstances, including your financial stability, timing, and personal preferences. Consult with a trusted real estate agent and financial advisor to make an informed decision that aligns with your goals and needs.

 

Elevate Real Estate Group

Elevate Real Estate Group (Brittany Wurfel, Jeremy Odland, Victoria Rowe, & Stewart Blair)

Happy Home Buying or Selling

Are you thinking of making a move soon?

How can we elevate your real estate experience?

Potential Next Steps >>>

  • Get a FREE online home evaluation: Free Home Evaluation
  • Book a free in-home consultation: Contact Us
  • Learn more about Elevate Real Estate Group: About Us
  • Could you leave us a Google Review: Google Review

Want more details on the current market? You can find more information about the current market here: London & St Thomas Association of Realtors.

Skip to content