When looking to purchase a new home and move out of the old one, the ideal scenario is that you find your next dream home at the same time that someone else finds yours and makes an offer. The closing dates line up and the moves are seamless. However, timing is everything and sometimes this does not happen. Often times, sellers find themselves needing temporary housing and storage because they need to move out before they have found a new home. For this reason and more, most would recommend selling before you buy – and here’s why.
As previously mentioned, timing is everything in real estate. When a home is sold first, this gives the seller with a sense of relief rather than a pressure to sell to avoid two mortgages. Selling a home first also provides the seller with more time to thoroughly search for their dream home, rather than choosing from a home just because it is convenient and available sooner. If needed, sellers can move into a rental property to avoid a second mortgage while looking for their next home.
During the negotiation and sales process, the pressure to sell quickly can make the sellers miss the opportunity to get a better value on their home. In fact, if they don’t buy first, they are less rushed to sell and can focus more on the value of their home. They can wait for the appropriate offer to come through and even counter offer for what they feel is right. The sellers will still have access to their home and can remain there until their ideal offer comes through. Also, if you plan to move to a different state or out of the area, buying a home remotely can be difficult. When your current home is sold, it provides the opportunity to choose the closing date, based on contingency, that works best for your long distance move.
In real estate, equity and capital are imperative to buying a home. Selling a home provides the owner with the capital to make a down payment on a future home. This also helps for the seller to get an appropriate loan to purchase another mortgage. Most people cannot afford two mortgages simultaneously, nor will they be able to easily get another loan until their previous home is sold. Financial stability is what everyone desires when going through the buying and selling process.