Acquiring a New Home – To Buy or To Sell First
The collective conundrum faced by house hunters across the world is as old as the riddle of the chicken and the egg. Granted it might not be that old, it is equally confusing, not to mention scary. The prospect of ending up in the streets because you were not able to make a wise decision might take a toll on a person’s intelligence. What if you sell it first and couldn’t buy before your time is up? What if you buy first and couldn’t sell your house and eventually, end up losing a very good deal? The struggle here is definitely real.
While the mystery of the egg and the chicken will always remain unsolved, there’s a possibility that this one has an answer. Before you move on, let us tell you not to look for a black and white answer having no grey area. Situations are different for everyone. Maybe the buyer of your house agreed to give you an indefinite time to search for a new one. Maybe the seller is your friend and has agreed on not selling the property to anyone other than to you. One decision can be wise for one yet totally stupefying for another. So, we’ll make things easier for you here by stating the pros and cons of each decision. Here it goes:
When you Sell First:
In case you sell your house first, this is what you are going to face:
- It is definitely a good idea of selling first. Once you have cash in your hand and you know what your limit is, hunting for a house becomes much more realistic.
- The most obvious con of selling first is being subjected to a deadline. The closer it comes, the more you panic. That rarely ends with ina good house hunting experience.
When You Buy First:
So, imagine you decided to buy your house first. In that case, prepare yourself for the following pros and cons:
- When you have a house to get back to and there is no panicky feelings and urgency in your decisions there, house hunting can actually be a pretty fun thing to do. Taking out your family and going house hunting and planning the future is all very exciting.
- When you decide to buy first, you have lots of time and loads of options to choose from. When your options are wide and you have plenty of time to think it through, the decision ends up being satisfactory.
- When the deadline is not looming on your head, the ball is in your court. You can make your own offers.
- When you buy first, you end up owning two homes at a time. Unless you are very rich, it becomes a problem financially as paying two mortgages at once is no fun.
As difficult as these situations may seem, you can actually deal with it easily. Just ask for a considerable time from your sellers so that you can house hunt at your own leisure. On buying first, you can arrange for some extra cash in advance and give it back once your house is sold.