3 Reasons to Sell Your House Before Purchasing a New One
Deciding whether to sell or buy a house first is a critical decision you have to make, depending on your unique situation and the current market conditions. For some people, selling a house before purchasing another is the more realistic and ideal option. However, it’s not always the most suitable solution, especially if you are selling in a buyer’s market. That’s because it can take you a while to find a buyer, and you probably can’t meet the expenses of your house and the one you want to purchase.
On the other hand, selling your house before purchasing can be a favorable option if you require access to your present home equity to purchase a new home. If you’re looking to buy and sell a house, it’s important to decide what comes first to avoid putting yourself in a difficult situation. To help you make an informed decision, here are some of the most practical reasons why you should sell your house before purchasing a new one:
1. Avoid a rushed purchase
Before making a home purchase, you should do proper research to know how much your desired home costs, the facilities available, and more to ensure it meets your requirements. Selling your house first leaves you with plenty of time to search and find a home that meets your unique requirements, and you’re satisfied with.
To avoid renting before you move into the new home, you should consider including a lease-back contingency in your home sale. Selling first also allows you to assess multiple offers until you receive one you’re content with. This way, you don’t have to accept any offer that you get so that you can purchase the new home.
2. Make a competitive purchase offer
Selling your house in a seller’s market can allow you to sell your property faster and for top dollar. However, if you’re buying in the same market conditions, you might need to submit a more competitive offer to purchase your desired home successfully.
Selling your house before getting a new one enables you to put in a more competitive offer without it being contingent upon your house sale. This is usually vital in a competitive market since the seller won’t have to wait for you to sell your home before closing the sale.
3. Know your sale profit
When you sell your house before you purchase another, you have a definite amount from the sale to assist you on your next purchase. It’s practically impossible to approximate the actual amount of your earnings because sellers often make adjustments.
Buying a house before listing your current home can lead to accepting a less desirable offer as long as it meets the asking price of the new house. By selling first, you have the chance to wait until you get the best offer to ensure you maximize your selling price. This allows you to plan your budget and negotiate the price of your new home, so you can purchase it without subjecting yourself to a loan.
There are many compelling reasons why you should consider selling your house first before purchasing a new one. Even if you can afford to buy a home without necessarily having to sell your old one first, it is not highly advisable. This is primarily due to the high costs of managing two households simultaneously.