Which comes first:
Buying my new house? Or selling my current house?
When you’re planning a move, one big question often arises:
Should you buy your next home before selling your current one, or sell first and then start house-hunting?
Each option has pros and cons. The right path depends on your finances, the market, and how much risk you’re comfortable taking. Here's a breakdown to help you decide.
Option 1: Buy First
Pros:
- No temporary housing – Move straight into your new home without the hassle of short-term rentals or storage. In today’s market in the Seacoast, rentals are scarce!
- Less stress, more flexibility – Take your time moving out of your current home at your own pace.
Cons:
- Double the cost – You may be paying two mortgages at once unless you purchase in cash or use a bridge loan.
- Urgency to sell – You might feel pressured to accept a lower offer just to reduce your financial burden.
Option 2: Sell First
Pros:
· Financial clarity – You’ll know exactly how much you can spend on your next home.
- Stronger negotiating position – Sellers will usually give priority to a buyer that does not have a home sale as a contingency.
Cons:
- Temporary housing needed – You may need to rent, stay with family, or use storage while you search for a new place.
- Time pressure – Once you sell, the race is on to find your next home, which could lead to rushed decisions.
How to Choose the Best Path
1. Consider the Market
- Seller’s market: Homes sell fast, so selling first may work in your favor.
- Buyer’s market: It may take longer to sell, so buying first could be safer if the right home comes up.
2. Evaluate Your Finances
- Can you carry two mortgages for a while?
- Do you need the proceeds from your current home to fund your next purchase?
3. Know Your Risk Tolerance
- Do you feel okay navigating uncertainty, or does the idea of juggling housing make you anxious?
Other Options to Explore
🔹 Bridge Loan
A short-term loan to help finance your new home while waiting for your current one to sell.
🔹 Offer Contingency
You make an offer on a new home that’s contingent upon the sale of your existing one. Some sellers may accept this, depending on the market.
Final Thoughts
There's no one-size-fits-all answer. The right move depends on your budget, timing, and comfort level. By understanding your options, you can make a confident decision and enjoy a smoother transition to your next home.
Please call one of the agents at Nola & Associates so that we can help you navigate these issues and chart the best path for you!
