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Should I sell my current property before buying a new one?
Asked By Mike M. | 673 views | Selling | 4 years ago
Answer(8)
Jason Craig
Coldwell Banker
Whether you should sell first or buy first depends on your financial situation, the local market conditions and your tolerance for risk. Selling your current home before buying gives you the certainty of knowing exactly how much equity you have to work with and avoids carrying two mortgages at once. It also makes your offer on the next property stronger because it will not be contingent on your own sale.
Buying your next home before selling can make sense if you have sufficient savings or access to a bridge loan or home equity line of credit to cover the down payment. This approach eliminates the need for temporary housing and multiple moves, but it carries the risk of paying two mortgages for a period of time if your current home doesn’t sell quickly. In a strong seller’s market your home may sell quickly with minimal contingencies, while in a cooler market it could take longer and add stress.
A middle ground is to put your current home under contract with a seller‑rent‑back agreement that lets you stay in the house for a few weeks after closing while you shop for and close on the new property. You can also make your purchase offer contingent on the sale of your existing home, but some sellers may view that less favorably.
Talk with a local real estate agent and mortgage lender to understand your options. They can help you estimate your home’s market value, discuss financing strategies such as bridge loans, and structure your contracts to minimize risk while allowing you to move smoothly from one home to another.
Buying your next home before selling can make sense if you have sufficient savings or access to a bridge loan or home equity line of credit to cover the down payment. This approach eliminates the need for temporary housing and multiple moves, but it carries the risk of paying two mortgages for a period of time if your current home doesn’t sell quickly. In a strong seller’s market your home may sell quickly with minimal contingencies, while in a cooler market it could take longer and add stress.
A middle ground is to put your current home under contract with a seller‑rent‑back agreement that lets you stay in the house for a few weeks after closing while you shop for and close on the new property. You can also make your purchase offer contingent on the sale of your existing home, but some sellers may view that less favorably.
Talk with a local real estate agent and mortgage lender to understand your options. They can help you estimate your home’s market value, discuss financing strategies such as bridge loans, and structure your contracts to minimize risk while allowing you to move smoothly from one home to another.
- 1 month ago
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Steven Hunt
Real Broker NY LLC
It depends on many factors when it comes to selling and buying. If you have somewhere to go once you sell your home like a family member or friend then sell first. If you plan to do short term rental then it might cost too much. I would recommend doing it simultaneously. There are somethings you will need to plan to make this process smooth, easy and cost efficient.
I would not recommend buying a home first then selling. If the market changes after you buy you might be stuch with 2 homes or you might have to take a hit on your home.
If you need some contacts let me know 518-526-4964
I would not recommend buying a home first then selling. If the market changes after you buy you might be stuch with 2 homes or you might have to take a hit on your home.
If you need some contacts let me know 518-526-4964
- 3 years ago
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Spirit Messingham
Tierra Antigua Realty
Some good answers on here. I would recommend speaking with a local lender to see if you can qualify to buy a home w/o selling your current property. Here in Tucson, AZ we are experiencing an extreme seller's market. If a buyer wants to make an offer with a buyer's contingency (where they need to list their home in order to close on the new property) they have very little chance of success when the sellers are receiving 10-20 offers, 25% of which on average are cash.
As an experienced agent, I have found that it easier on clients if they are able to find and buyer their new home, get moved in and then list and sell their old home. Hope this helps, good luck! Spirit
As an experienced agent, I have found that it easier on clients if they are able to find and buyer their new home, get moved in and then list and sell their old home. Hope this helps, good luck! Spirit
- 4 years ago
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Alfred Galvan
eXp Realty of California
Hello Mike, the answer is YES, contact me I can explain better over the phone - Alfred
- 4 years ago
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Hector Gastelum
The Gastelum Organization
Mike,
Depends on your Finances, Family & Flexibility. I have clients who prefer to do a concurrent transaction and close the deals the same day/week. I have also had clients who stayed with a relative or rented for short period of time.
Depends on your Finances, Family & Flexibility. I have clients who prefer to do a concurrent transaction and close the deals the same day/week. I have also had clients who stayed with a relative or rented for short period of time.
- 4 years ago
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Sakina Gamble
Keller Williams Realty River Cities III
I think that depends on a few things? First depending on your financial situation paying cash or doing lender finance. Some people are able to carry two mortgages and may not have to sell current home before buying another. Also, what is climate of the market in your area? If your market is moving and homes are going under contract with in days or weeks, you may want to have a property already under contract before putting your home on the market or make sure you have a good backup plan.
- 4 years ago
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Lynne Tran
Intero Real Estate Services
The right plan depends on the seller's situation. I usually negotiate with the buyer's side a rent back period for up to 60 days to allow time for the seller to find and buy a new home. Assuming a 30-day closing period for the current property, that rent back period gives the seller a total time of up to 3 months. I also work closely with my clients to arrange for the two properties to close escrow within the time line that fits their needs (time to clean up the current one, to move to the new one, etc.) while minimizing their costs.
- 4 years ago
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Linda Sopko
Key Realty
In today's market it's hard to decide to sell your home if you've got no place to live. If you're financially able to purchase a new home without the necessary funds earned from selling your current home, I recommend that route. A realtor can always help you plan strategically how to sell and buy concurrently. It puts you at a disadvantage if your market is as hot as mine. It's so much easier for a seller to accept easier financial terms and avoid the domino effect that occurs with multiple transactions relying on each other.
- 4 years ago
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