It can be tough to know what the best move is when buying and selling a home. Should you buy first, or sell your current home before making a purchase? The answer may depend on many factors including where you are in life, how much equity you have in your current residence, and if it’s better for your family. In this blog post we will explore selling your home before buying or visa versa? Both options so that you can make an informed decision about which route to take.
First of all, you’ll need a place to call home before buying a property. Buying first will ensure that you’re not uprooting your family or moving into an interim location with no immediate prospect for relocation. For many people, buying first is the way to go because of the potential for long term stability that comes with owning a home.
It’s also worth mentioning that the costs of living in a rental environment can be high. When renting, you’ll likely have to move every few years, which means more money and time spent on moving and less money available for saving up for a down payment.
One negative aspect of this option is that you have to spend a lot of money upfront. This can be especially difficult for first-time home buyers who may not know how much they need to save up or if they’re able to get a loan from the bank. When getting a mortgage, there are also closing costs and other fees involved with purchasing your new property which can vary depending on the state in which you’re purchasing.
Another con to buying first is that if your credit isn’t stellar, it may be difficult to get a mortgage loan approved.
Selling first is more expensive than buying if you’re looking to buy a property. You’ll have to pay commission fees when selling and then the buyer’s agent will also take a cut of the sale in addition to any closing costs that may apply.
One pro for this option, though, is that it could potentially save you money on your mortgage. When you sell your current home and move into a rental, the rent money will go towards paying off debt until you can get approved for another mortgage loan on your new property.
One con of this option is that it’s possible to lose some equity if the market isn’t doing too well in terms of selling prices or if there are higher-priced homes in the area.
If you have a low down payment, it’s often best to sell before buying because this will help reduce your mortgage debt and eliminate closing costs for the new property purchase. If possible, try to save up at least 20% of the price of your next home so that you’re not exposed to any debt.
If your credit isn’t doing too well, selling first may be a better option because it won’t affect the amount of money available for the down payment on your new property purchase. This is also true if you need to sell in order to move into more affordable housing or avoid an increase in your monthly rent payments.
You should list your home for sale at a price that is competitive with your area.
The market value of homes in different areas can vary drastically, and it’s important to be aware of the median list prices by zip code so you don’t undersell yourself or overprice your property beyond what buyers are willing to pay.
Moreover, if you’re selling your home, you’ll need to pay for a professional photographer and an agent to help market the property so there are costs involved in that as well.
There are many advantages to selling first. It’s important for home buyers and sellers alike to be aware of all the factors involved in making this decision, so you can make an informed choice that is best suited for your individual circumstances. I hope these pros and cons helped shed some light on what may work well for you!