What comes first, the chicken or the egg? Should I sell my house before buying a new one is a question that comes up often when families are making a move. How do the logistics work? What’s the best, easiest, fastest route?
Well it really depends on a lot of factors and the answer is unique for everyone.
When it’s a good time to sell your home before buying a new one:
- If you need the capital to purchase your next house.
- If the market conditions are such that buyer demand is high.
- If you are prepared to potentially move twice in the event your home sells before you find a new one.
If you need the cash from the sale of your current home to purchase the next one, this makes your decision pretty easy. Lenders do offer bridge loan options that allow you to borrow on short terms to purchase before selling but it’s still a nefarious risk to take.
If the market demand is high and homes are selling quickly, and over asking it may be smart to take advantage of the favorable conditions and cash in now.
Selling before you buy your new home does come with the risk of having to close on your current home before you find or close on your new home. In this case you’ll need to have a two-move-plan. This may include renting or staying with family in addition to extra moving and/or storage costs.
Conversely, it could be beneficial to have a place to stay while shopping for a new home, so selling your house first may not be best.
Your Realtor will help you sift through all the options available to you.
I hope this information was helpful – it’s always my intention to educate and empower you to make the best real estate decisions for you.
If you’re ready to start your home search, reach out! I can set up your home search in minutes.
Have a home to sell? Start here & I’ll email you a free home valuation.
You can find more helpful information on my YouTube Channel At Home in Saint Paul.