Facing the obstacle of buying a home while trying to sell one, is difficult in any market. In a seller’s market, handling this feat is especially difficult. In an ideal world you would close on one home and within hours close on the other. Logistically and realistically though, the odds of this happening are slim to none. Given that, you need to consider which action you should take first. Buy your next home? Or, sell your current home? In a seller’s market, the experts will often encourage you to sell first.
Above all, you’ll look stronger as a buyer. In a seller’s market being seen as a strong buyer carries a lot of weight. Put yourself in a seller’s shoes. This shouldn’t be hard given that you will be there as well in the very near future! There’s a good chance the seller will receive multiple offers on their desirable home. You love it, so why wouldn’t everybody else? Besides who is offering the most money and in what form, the sellers will also be doing their due diligence and determining if the sale might fall through for any reason. Seeing an offer that comes attached with a home selling contingency or knowing that you haven’t even listed your home yet, will give them pause.
The obvious perk to selling first is avoiding that dreaded second mortgage that you’ll be carrying should your home not sell as quickly as you had expected. Instead use the time it takes to list and sell your home to prepare yourself for buying. Research loans, check out what’s available, and keep your credit score high. The less obvious advantage to selling your home first is that research has shown that a furnished home sells better. If done right, your belongings can accentuate the space and allow the buyers to see themselves in this space. You can find more information on how to pull this off here.
That’s not to say that selling your home first doesn’t come without challenges. Primarily, where will you live during the search? Not one person wants to move twice! Consider your options to ease the transition while facing the inevitable. Could you put the bulk of your belongings into storage while you live like a minimalist in a hotel, short-term rental unit, or with family?
Whether you decide to sell or buy first, don’t act from a place of fear. Instead call a real estate expert, assess your options and be at peace with the route you’ve chosen. We have a great team that is here to help you navigate the journey to buying your second home. Give Town & Country Realty a call today at 717-299-4885.