​In my last post on buying and selling a home at the same time, we looked at some scenarios in which it’s best to sell your existing home first and then buy your new home. But there are also scenarios in which it’s advantageous to buy first and then sell.

Let’s look at two examples of scenarios in which it can be better to buy first, and some steps to take to help you plan it all out.

If you have the funds available to buy a new home before selling your old home, you should take advantage of this fortuitous situation. There are several reasons why it’s a good idea to buy first in the event that you can manage it. Buying first can be the least stressful way to move for a few reasons:

1. You can shop at your own pace for the next home without the pressure of lining up closing with your current house. 
2. You don't need to find temporary housing and can move once. 
3. You can stage your vacant house for maximum marketability
   
4. You don't have to have to keep your living spaces clean for constant showings. ​

​Identify and liquidate your assets to be able to make a good offer, also have documentation that you have the funds available

1. Make an offer
2. After you move out of your old home, stage it and put it up for sale
3. Once you sell your old home, put the money from the sale back into the accounts you used to buy

In this scenario it makes sense to buy first because it will be easy to get an offer accepted in the slow market and easy to sell quickly in the hot market.  This can happen in Harrisonburg/Rockingham when moving from houses at the median sales price to more expensive neighborhoods.  Statistically, there are less people competing the further away you get from the median sales price. 

People can shy away from this option because you will be hold two mortgages for a period of time.  Some clients are more comfortable with this than others.  If you are considering this as an option I would be happy to meet and discuss timing this move.  Each situation is unique.  Depending on your desire to move slowly, clean, and stage we can get the property marketed quickly.  Since I do my own marketing, I can typically be flexible to get the house on the market in a timely manner after it is ready.

Pricing plays a larger role in how quickly the property will sell once it hits the market.  However, in a hot market, good marketing and correct pricing can result in a quick contract.  The contract can then likely be negotiated for a 30 day settlement.  So, it is possible for you to only hold the two mortgages for two months.  We of course would want to be prepared for unexpected circumstances and be okay with it potentially taking a little longer. 

For homeowners who don’t want to worry about having two mortgages at the same time, there’s another option, which is making a contingency offer.  This can be a nice safety net if you really do not want to hold two mortgages for any given amount of time.  Some sellers may not be willing to enter into this type of contract but it is not completely uncommon in a sellers market. 

1. Do renovations and repairs on your current home ahead of time so it will be ready to sell
2. Make an offer on the new home, if you need to make a contingency offer, ask for 60 days
3. Put your current home on the market after you’ve purchased the new home and moved in
4. If you do have trouble finding a buyer, you can rely on a bridge loan or a home equity line of credit to help you cover your expenses in the interim. For recommended lenders, email me

Although it can require more cash on hand, for many homeowners there are still some situations in which it’s better to buy first and then sell later. Here is a look at some pros and cons of buying before selling.

• You have somewhere to move as soon as you want to
• You only have to move once, saving money on moving costs and storage
• You can take as long as you want to buy a home  you really love

​Feeling pressure to sell quickly may cause you to take a lower offer than you would otherwise

• Contingent offers are less competitive
• You may have less cash available to make a competitive offer than you would if you sold first
• If you decide to rent your current home, that brings its own challenges, and it can be more challenging to try to sell your home with tenants living there

Now you have the case for buying before selling, as well as the case for selling first, which we laid out in our previous post. There’s no one right decision, as it depends on your unique situation. So weigh the pros and cons, and go with your gut instinct.

​Sources: https://www.trulia.com/guides/selling-buying-house-same-time; https://www.zillow.com/home-buying-guide/buying-selling-at-the-same-time/

In our last post we introduced some strategies for buying and selling a house at the same time. 
But the question still remains, which should you do first, buy or sell? Whether it’s best to buy or sell first will depend on the particular situation you’re in, with variables such as the timeline in which you need to move, the market you’re buying in and the market you’re selling in. In this post we’ll explore why it can be best to sell first, looking at specific scenarios and tips for selling first.

Here are two sample scenarios in which it would be better to sell your home first, and some steps to follow for making it all work out.

In this scenario it may take up to a year to find a new home. Rather than stressing over getting the timing of buying and selling just right, sell first and plan to rent until you find your perfect home. That way you have no particular deadline for buying and can wait until you find just the right place to buy. In a hot market selling first is important because making an offer contingent on selling your current house can put you at a disadvantage to other buyers.  

1. Rent a place month to month and put your stuff in storage if necessary
2. With a nice clean home, stage your home beautifully
3. Once you sell, put the money in a liquid account so it’s ready to go for a down payment on your new home

This is actually a very common scenario, and most people in this situation need the money from the sale of their current home to be able to buy in a new city.
It may be best to rent for a few months in the new location to help you get familiar with the new area.  It can also help to have a local agent help guide you.  If you are planning such a move, I'd be happy to connect you with a qualified agent in your destination city across the country.  Shoot me an email.

1. Declutter your home and stage it for the sale
2. In the event of a quick sale, you can negotiate an extended closing period or a rent back so you can spend a little more time in your home before moving
3. In your new city, get a month to month rental that will allow you to explore before buying.
4. Get connected with a qualified agent in that area (I'll help screen them).

However you choose to go about selling your current home and moving into a new one, there are some pros and cons to consider for selling first and buying later. Here are a few of them.

• You will know exactly how much money you have to spend on a new home
• It will be easy to apply your existing equity to the new purchase
• It may be less stressful to bring your time in your old home to a close before purchasing a new one

• Usually you will have to find someplace to live in the interim
• The expenses of storing your things and moving twice

​Here you have a case for selling first, but there are scenarios in which it may be better to buy first. We'll explore buying first in our next post!

Sources: https://www.trulia.com/guides/selling-buying-house-same-time/
https://www.zillow.com/home-buying-guide/buying-selling-at-the-same-time/