Should I Buy First - or Should I sell First?

May 30, 2007

Very few homeowners are in a financial position to be able to carry tow mortgages at the same time.  When it comes time to move, will you sell your current home first or will you buy your new home first?  Each of these options have their own pluses and minuses.

Selling your current home first avoids having two mortgage payments, it doesn’t require any interim financing and it will probably be a lot less stressful should your current home not sell quickly.  By selling first, you will also have a stronger negotiating position when purchasing your new home.  You won’t need to ask for the purchase to be subject to the sale of your current home.  Most sellers do not want to be placed into that type of contingent sale – not knowing when they will be able to move on with the proceeds from their current home.  This may put you in a position to need to rent short-term while you are looking for the your new home and you may have storage expenses too.

If you purchase your new home before selling your current one, you will know where and when you’ll be moving – you’ll probably not subject yourself to two moves – and you’ll have a handle on the exact costs.  If you purchase your new home first, you will know whether you will need or want to take your current appliances, i.e. refrigerator, washer, dryer or include them in the sale of your current home.  If you leave them, it could be a good negotiating point with the buyers.

Either way, having a good real estate agent on your side is the best way to proceed.  An experienced agent can give you advice on other options and an agent with good negotiating skills can help you get the highest dollar for your current home and negotiate the best price on your new home.

For additional information or questions, call Gary and his Team of Experts (619) 297-7001.  “Making Your Next Move – Your Best Move!”

Posted in All Things San Diego, Helpful Hints, Lending, Real Estate