If you’re selling your house and buying a new one, you’ll probably be faced with the challenge of juggling the two acts at once. Many people need to sell their current home to be able to buy the next one, especially if you’re moving up into a bigger home. Sometimes, these homeowners are fortunate enough to be pre-approved to buy a new home without selling their current home.
No matter your situation, though, we need to sit down and come up with a strategy. Just because you’re pre-approved to buy a home without selling your current house doesn’t necessarily mean it’s the right way to go. Both options have their pros and cons.
By buying your next home first, you maximize your convenience by moving in, getting settled, and then prepping your existing home for sale without having to worry about living in the home you’re trying to sell. You won’t have to constantly make your beds, do all the dishes, and live through home showings. That’s what I call the maximum convenience option.
By selling your current house first, you have the advantage of knowing exactly how much money you net. Then, once you have cash in hand, you can go shopping for your next home. In this situation, you maximize your dollar because you don’t have any uncertainty about how long you’ll have double mortgage payments and you know exactly where your financials will be.
While you might know your financial picture, since we’re in a market with low inventory, you might be sort of a slave to the market. If your dream house isn’t on the market, you might have to resort to renting in the interim or settling for a home that’s on the market.
Both strategies have pros and cons, but the best way to figure out what’s best for you and your situation is to talk to your real estate agent. We’ll sit down and talk it through and examine how sellable your property is, as well as where you’re going. We’ll also look at things from a risk management point of view.
If you have any questions about buying and selling a home here in the Portland area, give me a call or send me an email. I’d be happy to help you!