Timing can be everything. Sure, there are some risks if you sell your home before you have found a new one – where are you going to live until you? How and where are you going to store your belongings if you don’t find another home to buy before you have to leave the one you’ve just sold? There are, however, advantages to selling your home before purchasing a new home.
You’re In Control
If you aren’t trying to balance two properties at the same time, it puts you in a better position to be in control of the price of the home you’re selling. You don’t have to be out by any certain date and, therefore, there is no pressure to take the first offer you receive. In fact, in many instances, if you don’t have to move quickly to sell your home, you might be able to negotiate a better price. You want to sell, but, you’re in no necessary rush.
Stronger Buying Position
When selling your home, wouldn’t you prefer a buyer with ready cash and/or ready access to a pre-approval to purchase your home? The same is true when you find that home you want to buy; if you sell your home first, you will have money in the bank to negotiate with the seller of your next home. That seller would almost always prefer a buyer who already has the cash in hand to make a clean purchase.
What is the housing market doing at the time you decide you want to sell your home and buy another? If you see that prices are falling, it’s not a bad idea to be able to wait and see how low they will go. If you’ve done your research and you know the area you in which you want to buy your next home, study the property values. What’s for sale there? What can you get the best deal on, while still getting the next home of your dreams?
If you sell your home and don’t purchase another right away, you can always rent for a little while. There can be some disadvantages to selling before you are committed to your next home but, all in all, the positives can outweigh the negatives.