Pitfalls of Buying and Selling at the Same Time
Is it better to sell your current home first and then look for a new one – or to buy your next home first and then look to sell? The answer? Well, it depends.
If you sell first, you might find yourself under pressure to find a new home quickly – and if you’re feeling rushed, you might end up settling for less than what you want or end up overpaying.
Of course, if you decide to buy first, you could be saddled with the expenses of both homes until your current home sells.
For most people, finances dictate the answer since they’ll need the equity from their current home to use as a down payment.
There are options. Some people secure a bridge loan that’s paid back when their home sells.
Others negotiate to sell, but then rent their current home back from the buyer for a period of time. Some people move in with family members or rent until they find their next house.
It is a difficult decision and there is no “right” answer. Your REALTOR can talk through the options with you and help you decide which way is best for you.
