Do you need more room for your growing family, or do you prefer to upgrade to a new home rather than renovate your current one? Whether it’s due to financial changes, neighborhood developments or something else entirely, moving can be both exciting and stressful, particularly when it comes to determining your buy/sell strategy. Here are a few options homeowners often choose from when they’re moving up.
- Buy while you sell: Want to play the role of buyer and seller simultaneously? If your home sells quickly, you may feel compelled to make a rushed decision on a new house. On the other hand, if it lags on the market, you can miss the chance to tap it for a down payment. Some try to mitigate these risks by making an offer dependent on the sale of their current home, but it may be difficult to find a seller who will accept those terms. For that reason, many focus on either buying or selling first.
- Sell your home first: This option lets you know how much cash you will have for a down payment. You may also find it easier to qualify for a loan since you’re carrying less debt. The downside is that you’ll likely have to budget for two moves — when you sell and again when you close on the new home.
- Buy the new home first: Buying first means you have to move only once. That said, you may have to carry two mortgages for a while, and you’ll need a source of cash for a down payment other than the sale of your home.
There’s no right path for everyone. But if you consider the pros and cons of each approach, you’re sure to find a home that’s a perfect fit for you.