If you sell first, you may find yourself under tight deadline to find another house, or be forced find a temporary residence. If you buy first, you may end up with two mortgage payments for at least a couple of months. You may need the money from the sale of your original home in order to pre-qualify for the loan for your new home.There is no correct answer and it basically comes down to your specific circumstances and what you feel comfortable doing!
Sell first, and have a 3-4 month possession. This gives you 1-2 months to find a new home and tie the dates together.
Advantage - Better negotiating position on both sales.
Disadvantage - You may not find a home and end up renting or living with relatives.
Buy first, “Subject to Sale”. List your home after you buy.
Advantage - You will not be without a home.
Disadvantage - “Subject to Sale” means there will be a time clause in the contract for your home. If invoked, you may have to give up your new home.
- You end to pay more $$’s when you buy this way because it is a weaker offer & the seller will tend to counter higher.
- You tend to sell your old home for less $$’s because you have fallen in love with your new home and don’t want to lose it!
Buy first but NOT “Subject to Sale” - Sellers will not accept this!
Advantage - If you negotiate a long closing on your new home, your old home will be rising in value!
Disadvantage - The market may change before you sell your old home.