Don’t Buy Before You Sell

If you are looking to sell your home and move into a new home you are probably anxious to start looking for your new dream house but also worried about selling your own home.  This is a regular dilemma that faces homeowners — buy first or sell first?

Many homeowners believe that it is better to buy a new home before selling their old home.  Nobody wants to be in a situation where they’ve sold their home and have to move out but haven’t found a new place to live.  However, in actuality it is better to do the reverse—sell before you buy!

If you buy a new house before you’ve sold your old house you will be worried about being stuck paying two mortgages at once.  Therefore, you will be likely to settle for less money.  Nothing screams “desperate” like “seller motivated, already bought new property.”  Don’t get caught in that trap! 

If you are nervous about selling your home too soon and not being able to find a new home before you have to move out, don’t worry!  There are other options for you.  Many people opt to rent for a short period following selling their house.  Renting gives you the luxury of time while you are looking for your new home.

You may also add a contingency clause to your sale.  This allows a period of time (usually 7-21 days) during which you can look for a new home.  During this time you can also change your mind and decide that you don’t want to sell at all.  This clause basically states that the sale is “contingent” on the seller finding a new home.

So think all you want about that new dream house, but don’t buy before you sell!