Buy Or Sell First

Dated: 11/14/2016

Views: 217

There are lots of things a real estate professional gets asked when they assist buyers and sellers. If you ask your agent, they can probably rattle off a pretty good list of common things. In our experience, one of the biggies is "Should I buy first, or should I sell and then buy?" Our answer depends on a couple of things; your immediate need, market conditions, etc. If you do happen to find your dream home before your home is on the market and has sold, you may be faced with carrying two mortgages for a while. What will you do? If you sell first, where will you live until you find a forever home? Would you rent? 

 Mortgage Broker with The Red Door Mortgage Group – Mortgage Architects, April Dunn, has written a great article on castanet.com with a list of what-ifs to consider in either situation*. If you buy first, and find yourself with two mortgages, Ms. Dunn suggests that you may be able to get a line of credit on the equity you have in your home which has no penalties for early payoff.  The payments are interest only, so while you own two homes at once, the payments are low. Once you've sold your existing home, you can then pay off the line of credit you used for the down payment in full. 

On the other hand, if you sell first, some possible solutions include the following:

  • You could ensure the offer includes a clause that the sale is conditional on you purchasing a new home.

  • You might request a longer closing date to give you time to find a new home.

  • There are some instances when the purchaser of your home might not need to move in the exact day that you are planning to close the purchase. In this particular case you might be able to buy some time by simple “renting” from the new owners. This is useful if you have found your dream home but you are not moving in for a few days or weeks. Alternatively, of course there are some great all service hotels and furnished accommodation that might be suitable for a short stay rather than imposing on family and friends.

Are you undecided on what you should do if you're looking to sell then buy, or buy, then sell? Give us a call! We have helped hundreds of clients work out all the scenarios, in either situation, and have a great success rate! Call the office at (423) 433-6517 to schedule your no obligation consultation if you need some advice. We're here for you!

*Exerpts from http://www.castanet.net/news/Mortgage-Matters/176699/Do-you-buy-first-or-sell

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Rayne Price

Holding a BS in Environmental Science, and MA in Education, real estate was not Shields Team Buyer Specialist Rayne Price's first career choice. It was only after encouragement from his wife and a cl....

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