Should you buy a new home or sell your current property first? Each option has its advantages and risks. By carefully weighing the pros and cons, and planning for alternatives in case of a hiccup, you will be able to make an informed choice.
What does selling your home before buying a new one entail?
By selling your property before finding another one, you will know the exact amount you will receive from the sale. This will give you a clear idea of how much money you have available to purchase your new home.
You may feel an urgent need to find a new home. However, keep in mind that you will have all the information you need to make a solid offer to purchase. For example, knowing when the buyers of your home will be moving in will allow you to determine when you want to take possession of your new property. If these dates don’t coincide, you can always opt for temporary housing.
What does buying your new home before selling your current property entail?
By buying first, you will know your new address, the exact cost of your new home, the date you will become the owner, and the date of the transaction in advance. You can take these factors into account when you receive an offer to purchase your current property.
It is also possible to make a conditional offer to purchase your property. In this case, the owner of the residence you are interested in may receive another offer to purchase with no conditions attached. In order to give you priority, they will ask you to remove your condition. You will then have the choice of purchasing this property before selling yours, or withdrawing your offer.
In any case, it is a good idea to have a temporary source of financing in case your current property is not sold when you sign the purchase contract for your new property.
