Should You Buy Or Sell First?
Wednesday Dec 25th, 2019Share
During this video, I will answer the commonly asked question of ‘Should you buy or sell a home first?’. This ultimately depends on the current real estate market, your tolerance to take a risk, and your buying criteria. Some of the advantages of either scenario are:
- Dynamic interest rates: It’s always a good idea to buy first because if the selling process is prolonged (more than 90 days) than your pre-approved mortgages and interest rates can get you in trouble as they change very quickly.
- Time for renovations: Buying a home first gives you an added advantage of completing the renovations of the home before moving in. You can wait in your old home for as long as it takes to complete the renovation.
- Freedom to buy a home without time constraints: If you sell first, you’ll be under pressure to find a home, which may cause you to buy a home that doesn’t fit your specific criteria. Buying first allows you to be as picky as you would like to be, and this is especially recommended to buyers that are looking for very specific properties, like a home with a pool or an elevator.
- Know your limit: Often, sellers believe their home is worth more than market value. However, no matter what your think your home is worth, the market will always decide the price. Once your home is sold, you’ll know how much you can spend on the next home with certainty.
- Avoid the stress of not selling a house on time: Selling the home first, will relieve you from the stress of rushing to sell the house. Often, sellers close a deal on the home they buy which causes them to rush the process of the sale of their home. Take your time to sell the home first with the best agent to work in your interests.
- Market dynamics: You’re prepared to deal with ever changing prices of the properties. You may be buying in a hot seller market with high prices…but by the time you have decided to sell, the market may have dropped, causing you to have a loss.