While selling first might seem like the best bet, it also depends on the market. Research prices in the areas where you’re both buying and selling, legal site Nolo explains. You should find out whether the market favors sellers or buyers. That way, you can optimize your stronger role while protecting yourself in the weaker role, as they put it.
When you sell your home before buying a new one, you know how much money you have to work with. It’s also easier to get a new mortgage when you’ve sold your old home. You won’t have two mortgage payments holding you back. Logistically, selling first is usually the best way to go. But it does come with a few disadvantages, too. For one, you could sell without having anything lined up. You may have to rent while you look for a new home, or keep some belongings in storage.
Deitsch suggests a variation of this plan. If you buy first, you can possibly rent your old home out for a while. This would help you cover the mortgage payments while you move into your new home. Of course, now you have the added headache of becoming a landlord. With a little preparation, it’s possible to minimize the stress of buying and selling a home at the same time. Know the market, know your options, and come up with a plan for making it as seamless as possible.