If you’re a homeowner preparing to move, you’re undoubtedly curious about what to expect and what need to be done first:
- Is locating your next residence a better place to start?
- Or should you sell your house before you start looking for a new one?
What’s best for you ultimately depends on a number of variables. And that’s where the expertise of an agent can truly help you decide what to do next.
They are aware of the most recent trends, the local market, and what is currently effective for other homeowners. Additionally, they can offer a recommendation based on your needs and their area of expertise.
However, here is a small preview. Nowadays, you may be in a better position if you list your current house first. Why that order usually works best is explained here, along with how an agent can assist.
The Advantages of Selling First
1. You’ll Unlock Your Home Equity
You can access the equity you’ve accumulated by selling your current house before attempting to purchase your next one, and given the recent increases in home values, that’s a significant sum. According to data from Cotality (formerly CoreLogic), the typical homeowner currently has $302K in equity.
Additionally, you can utilize that equity to cover the down payment on your next home (and possibly more) after you sell. You might even have enough cash on hand to purchase your next home. That’s significant and could significantly ease the financial burden of your next move.
2. You Won’t Be Juggling Two Mortgages
Even if it’s only for a few months, trying to buy before you sell could result in you having two mortgages. That can quickly become costly, particularly if there are unforeseen delays or repairs. Selling first helps you move on without the financial burden and relieves that stress. According to Ramsey Solutions:
“In order to minimize needless risks and potential headaches, it is best to sell your old house before purchasing a new one.”
3. You’ll Be in a Stronger Position When You Make an Offer
Sellers adore a clear, straightforward offer. You don’t have to condition your offer on the sale of your house if it has already been sold, which can make you stand out. To increase your chances of obtaining the house you desire, your agent can craft your offer to be as compelling as possible.
In competitive markets, where sellers favor buyers with fewer conditions, this can be a significant advantage.
One Thing To Keep in Mind
However, as with everything in life, there are compromises. Take into account this possible disadvantage as you evaluate your options:
1. You May Need a Place To Stay (Temporarily)
You might need to stay with family or find a short-term rental after your house sells so you can move into your next residence. To ease the transition as much as possible, your agent can assist you in negotiating terms like flexible closing dates or post-closing occupancy, which entails renting the house from the buyer for a predetermined amount of time.
This straightforward illustration can assist you in considering your options (see below):
However, how can you best decide what’s best for you and your particular circumstance? Speak with a reputable local agent.
Conclusion
It can be hard to buy and sell a house at the same time, but with the right plans, timing, and help from professionals, it can be done. You can get through this process easily and confidently move into your new home if you stay informed, prepare financially, and work with a real estate team you can trust.