One of the most common questions clients ask me is, should we buy first or sell first? There is no right or wrong way to answer this question; every client is unique. I feel that having a full understanding of the best and worst-case scenarios in each situation, knowing what conditions are there to protect you, and getting a grasp of your comfort level will start to help guide your vision into reality.

Buying First And Selling Second:  

The BEST case scenario for buying first and selling second allows you to be picky and find that perfect home meeting all your needs and wants while selling your home at top dollar.

The WORST case scenario for buying first and selling second may result in owning two properties at the same time or having to offload your current property and not getting what you should have because you ran out of time.

Selling First And Buying Second

The BEST case scenario for selling first and buying second is you know exactly how much you can afford for the new purchase, meeting all your needs and wants, and finding that home within the time frame of the closing dates.

The WORST case scenario for selling first and buying second may result in a gap of residence. Example current house closes before you get the new home and having to find temporary accommodations, for example living with relatives or moving into a hotel. You may also have to give up some wants and needs of the new purchase to accommodate the closings.

Now that we have gone over the best and worst-case scenarios, you can start to see your comfort level taking you towards a particular path. At the same time, there may be external factors that may lead you down a specific way. The majority of the time, it comes down to affordability. Can you afford both the new purchase and your current house, at least temporarily? Or are you using the proceeds of your existing home to qualify for your new purchase? Not sure? This is the point where I would introduce you to an experienced mortgage broker.

We need to take a look at the motivation driving your move; is this a job transfer? Upsizing? Downsizing? Some of these factors will cause you to go down a path that you may not be comfortable with. In that case, there are conditions that can be included in the offer that will help you not own two homes or, on the other hand, be homeless.

It's also important to know how these conditions will benefit you as well may hinder the process. Protecting yourself from owning two homes, I would recommend putting a condition in the offer to purchase that would be conditional on the sale of your current home. Now, this condition is not always acceptable to the Selling side. If the Sellers don't want that condition, you risk missing out on buying that home. If you proceed without the condition of selling your home, you may have to drop the price of your home dramatically to try and offload your home, or you may own both houses if your home doesn't sell.

On the flip side, protecting yourself from not having a home to move into or not wanting to waver on your needs and wants, I would recommend putting a condition in the offer that would be conditional on securing the purchase of your new home. Now, this condition is not always acceptable to the Buying side. If the Buyers don't want that condition, you risk having a qualified buyer move on to another home. If you proceed without the condition on securing the purchase of your new home, you may risk not having a home to move into or may have to waver your needs and wants.

As you can see, when buying and selling at the same time, it can feel like a dance. Knowing the pros and cons of each scenario can help ease your comfort level and adapt to changing situations that can arrive in the buying and selling processes. In my experience, the "best" solution is to have your house on the market or have your home ready to list on the market within 24-72 hours when buying. Everything is a guide until we are in the thick of the selling and buying process. Having an experienced Real Estate Broker working for will help ease your stress and keep you within your comfort level, all well selling your home for top dollar and getting you into your next "Dream" home.

Give me a call. The first step starts with a conversation!