Dear Kathe,
We are thinking about moving this spring but have a home to sell – should we find our new home first or sell our current home first?
If you are considering a move but have a home to sell, then you may find yourself in a common predicament – do you buy first or sell first?
If you buy first, you may face the reality of owning two homes at once, which could require a lot of belt tightening (and cutting back on coffee runs!) While we have a shortage of inventory and well-priced, well-conditioned homes are moving well, there is still a risk that you may carry two homes for a while (our strongest market period will begin again in early 2015). Of course, buying first allows you to lock in a home you really love.
If you sell first, you don’t have the financial risk of carrying two homes. But there is a possibility that you may be unable to find a home you love when yours sells, and be faced with temporary housing for a while. This may be the lesser of two evils, if you achieve a sales price on your home that you are happy with. And of course, you may have no choice – your lender may require you to sell before you buy.
There is the option of making a contingent offer on a home you like, and we now have the “right to continue marketing” option for this contingency that makes a seller more willing to consider such a contingency. However, the stigma of a home sale contingency still stands and many sellers will not entertain this option.
Perhaps the best avenue is to list your home after the holidays and start looking for your new home. Once your home is under contract, you will probably have a good sense of what is available to buy and hopefully have isolated a couple of top choices. At that point you will be ready to make your offer and get moving! Fell free to give me a call and we can design a strategy that suits your specific needs!