Deciding on Which Comes First: Selling Your Old Home or Buying a New

Deciding on which to do first—buying a new home or selling your old one—is a question that frequently ponders the mind of home buyers and home sellers. Luckily, it is no “chicken or egg” debate. And all boils down to weighing both the pros and cons of whichever you decide to accomplish first.

I have split them for you as follows. Feel free to also watch this video where I surmise what you need to know about the topic:

Selling First

One of the main upsides of selling your home first is that it gives you a pretty straightforward figure of how much money you can afford to shell out for your next one. Once you have closed your home’s sale, you can easily carry on with making an informed offer to your prospects second house.

A downside to selling first is that if you do it too early and you don’t have possession of your new house yet, you will most probably have to look at temporary housing options. You’re essentially on ground zero if you sold your house without at least prospecting for a second house.

Buying First

Houses are not all built equal. Very seldom that you will come across a “house of gold,” and naturally as an investor and a wise-thinker you would want to secure that property. Perhaps you come across your “dream house” and get excited and want to buy the property right away. If it is being eyed by other investors, the pressure comes a bit more nagging.

If you decide to chance on the property and take dual mortgage, that’s alright too. But you do not need any reminder how daunting one mortgage is. What more is two?

Final Thoughts

In the end this is a question of risk-taking and indeed a little bit strategy can come into play.

Some handle risks better than the others, but it doesn’t mean you can’t seek help. Ask a professional for his/her opinion on your specific situation if it helps you make a decision. Weigh in your options and decide on whether to sell or buy first.

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I hope this sheds some light and helps you decide on which route to take. If you find this post of value, feel free to share it to your social network and find me on Facebook and follow me on Twitter!

Have a great one, friends!

Sincerely,

Esmeralda.