When thinking of moving from your old home to a new one, for whatever reason, the first question that comes to mind is what you should do first Buy your new house or sell your old one first. This question has no right answer. It depends on your finances, market conditions for both new and old homes, and your timeline when moving between the two properties. However, below we’ve listed the pros and cons of both problems. You may also like to learn about the Kingdom Valley.
This condition is viable only for those who have the financial security to own two homes, which creates a convenient option that does not require you to move multiple times. Other benefits include:
- Buying a new home first relieves the stress from a rushed purchase, as your old home won’t be listed on the market yet. This also reduces the need for extended stays in temporary housing.
- With this decision, a controlled and well-planned moving timeline can be made, as you don’t have to squeeze your moving time between selling and buying your old and new homes.
- Securing your ideal home would be much easier as you no longer have to wait for your old house to sell for you to buy the new one.
- It helps avoid relocating from multiple housings and move only once when everything is ready.
- Avoid inconvenient and stressful selling. It would be best to sell your home once you’ve moved into your new one and helped decorate the new one to showcase a beautiful home for the new owners.
As beneficial as it may seem, this decision does come with its downsides:
- Owning two residences simultaneously does not make financial sense for many individuals. You may require funds for a down payment or out-of-pocket charges such as moving and staging. You’ll also need a high debt-to-income ratio to qualify for a new mortgage.
- The stress of owning two homes with their mortgages to pay for leaves an urgency in selling the old home quickly. This usually results in you accepting the first offer you receive. Leasing or renting a home can help your finances when market conditions are bleak.
This option is more practical for a majority of people however is not convenient. This becomes essential if buying your new house requires funds from selling your old one. However, this also brings the strain of renting property to stay in before purchasing a new home. Before delving further into the issues when dealing first, let’s list the gains from it first:
- This helps avoid a rushed sale as you can wait as long as desired until the best price is available.
- Helps make a more substantial purchase offer in the market. Making an offer reliant on the sale of your own home in a seller’s market may make your offer less acceptable or competitive.
- Having an actual sale profit from your old home helps when deciding what sort of house to buy within budget.
- With only one house to worry about, the stress of paying two mortgages is alleviated.
- Once you decide to sell your old, you can prepare it for a good sale. It is best to hire a professional company to complete this task. Get the idea from the Rudn Enclave.
After these gains, there are also issues with this decision, as you may feel stressed from living in your home as well as listing it to showcase new buyers, with the additional strain of being able to buy a new home within the 45-day closing window from the old one. Other cons include:
- The stress from buying before your home is sold or staying in between temporary housing may cause you to rush in your purchase of a new home.
- The added cost of temporary housing while you buy a new house.
- The burden of moving from housings more times than one, along with the cost, need of storing items which your temporary home can’t house is undesirable and tedious to most.
With all these pros and cons listed, you can hopefully now choose which choice is the best for you.
Muhammad Junaid is a CEO of VM Sol, senior Analyst, and Search Engine Expert. Extensive experience being an IT Manager in GreyBricks Marketing – Capital Smart City. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.