Should you sell or buy a house first? That’s a big dilemma for many homeowners! Both these options have their pros and cons. We’ve listed the best tips to make both these options work.
When it comes to deciding whether you should sell first or buy first, there’s no right or wrong order to do it. It all depends on your finances, market conditions, and moving timeline.
When you sell first, you have to move somewhere temporarily, like a rental home or hotel room, until you buy your new property. If you buy first, you may end up paying two mortgages until you can sell your old place. Instead of worrying about which option is better, check out tips on making these choices work for you.
When Should You Sell First?
You can opt to sell first if you want the equity from your current home to pay for the next one. The biggest benefit of this method is that it makes sense financially, and you can pay for your new home using the proceeds from the last sale. Also, you don’t have to pay two mortgages, avoiding straining your finances. However, the drawback of this method is that you may have to spend money on temporary housing until you buy your new place. Here are a few tips to make this option work:
- Be Patient: You may expect the sale to complete within a few weeks. However, things may not always go as planned, especially in a buyer’s market. The inventory is more than the demand for houses in a buyer’s market, and you may not receive a firm buyer offer. If you’re struggling to make a quick sale, consider the next tip.
- Opt for a Cash Sale: A cash sale is the easiest way to sell your house quickly without any hassles. Look for ads stating, “We buy houses in Charleston, SC,” to locate the best cash home buyers in Charleston. Cash deals are usually completed as fast or as slow as you desire. You can proceed on your timeline instead of the buyer dictating the terms. A cash sale also puts money in your pocket that you can use for your next home.
When Should You Buy First?
If you have already found a new home that you love, it makes sense to lock it down before someone else picks it up. As homes tend to sell quickly in preferred neighborhoods, it’s a good idea to complete the sale, even if you haven’t sold your previous home.
Here are a few options to make this choice work:
- Avoid a Rushed Sale: You can hold onto your old property until you get a good offer when you don’t have the pressure to sell quickly. The other benefit is that you have to relocate only once. There is no shifting into temporary housing, as you can directly move into your newly purchased home.
- Apply for a Bridge Loan: With that said, purchasing a new home first strains your finances as you have to pay two mortgages simultaneously. To maximize cash flow, you can take a bridge loan or HELOC to pay for the down payment of your new home.
- Rent Out Your Old Home: If you’re struggling to make ends meet, you can rent your old home temporarily until you complete its sale.
As you can see, both these options have their pros and cons. Analyze your financial situation and choose the best method that works for you.