Selling Your Home Before Buying A New One

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.

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.

Sellers Market

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.  

Steps to Follow

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

Relocation

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.

Steps to Follow

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).

Pros and Cons

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.

Pros to Selling First

• 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

Cons to Selling First

• 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/