Buying Real Estate Part 3 - Buy or Sell First?
The pros and cons of each option
Understanding Your Options
So you're going to buy a new home. Now comes the age old question: Should you buy or sell first?
Your decision may be affected by a number of factors, such as market conditions, personal preference and your financial situation.
- You will have a home already secured as a safety net if your old house sells quickly.
- You can access equity in your loan to pay for the deposit for a new home.
- You can spend as much time as you like shopping around for a new home for sale.
- You might have to organise bridging finance between the two properties, giving you a time limit.
- You might feel pressured by time and accept a lower offer.
- If your old home sells at a less-than-desirable price, you may have to fund the difference in costs.
- The proceeds from the sale of your home can be used for your next purchase.
- You will know exactly how much to spend on your next home.
- You might have more time to find a new home while your old property is on the market.
- If your home sells quickly, you could be left to make a rushed purchase.
- Local property prices could rise in the time between selling and buying a new home.
- You might have to spend more money to rent accommodation while between homes.