Timing the Sale of Your Home |
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It is likely that you are juggling the duty of selling your current house
and buying your new home. You will need to coordinate when to sell and when
to buy. There are many factors that come into play in this scenario.
Buy Before You Sell:
If you decide to buy before you sell, you know that you will have
a place to live. On the other hand, you will need to be prepared to make two mortgage
payments. You can always try to make your offer to purchase contingent upon the sale
of your current house. However, some sellers may shy away from such a contingency.
If they decide to accept your contingency, they might want to place some limitations
on it. For example, the seller might want to keep their house on the market and continue
to accept offers. If they receive an offer, you will be given the opportunity to
remove your contingency and purchase the house immediately.
Sell Before You Buy:
This strategy can put you in a strong bargaining position.
First of all, you don’t have the pressure to sell quickly. Second, you will
know exactly how much money you have made (or lost) from the sale. However,
if you sell before you buy, you may need to rent an apartment or live with
family while you are shopping for your new house.
Buy and Sell at the Same Time:
Many people list their house the same day they begin shopping
for a new house. Under ideal circumstances, you will be able to close on the sale
of your house one day and your new house the next day. However, things can go wrong.
It is possible that your buyers’ financing is delayed or the house you planned to buy
has an inspection issue. Either way, you should be prepared for whatever situation
may arise.
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