Purchasing a home is most likely the largest purchase you will ever make. Moving can be stressful, and scary. You have two options:
1. Sell your current home first and then purchase your new one.
2. Purchase your new home and then sell your current one.
There is no right or wrong answer but there are factors you should consider with either option.If you sell your current home first, you have more negotiating power, and less stress. When you are ready to put an offer in on a new home, you can go in unconditionally (you will not need to include the clause of sale of purchaser’s current home) and will be easier to nail down a move-in date that is convenient for you and the seller.
The only drawback to this option is that if you are looking for a home or an area that is fairly specific, there may not be many options pop up in the time frame you are looking at from sale of your home to possession date of your new one. Talk to your mortgage professional: If you are in good financial standing, bridge financing is an option and takes away the stresses and worrying whether you will find your new home in time.
If you choose to purchase your new home and then list your current home, you may have to include the clause of -sale of your current home by a specific date. This essentially means you are “tying up the sale” until your current home sells, and if another offer comes in on the property you conditionally purchased, and you cannot firm up (take the risk your home will sell in time and remove that condition from your original offer), you will still lose the home to the other party with the cleaner offer. Normally you will have 24-48 hours to decide this with the clause in your offer, but it is a risk that is evident with this option of purchasing your new home first. Do you want to purchase your new home you fell in love with and then possibly have it ripped away?
Some like the peace of mind of knowing where they are going before they sell. If you are financially in line and your home is a good potential for a buyer, many forego the clause of sale of purchaser’s property altogether if they are confident that if it is priced right, it will sell, and have no stresses. This is very true. If your home is priced right for the market, it will sell regardless.
Whether buying or selling first, there are options for both scenarios that will give peace of mind. If all your ducks are in a row(your financials are good to buy/sell and you know what you want and where), it will be a breeze!
Whether selling first or buying first, Virtue Realty can help you. Get in touch with us.