Selling Your Existing Home Before Buying a New One

If you need to buy and sell a home at the same time, there are four instances when it’s smarter to sell before you buy.

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There are four specific instances when it’s smarter to sell your current home before buying a new one:

1. When you don’t want to risk carrying two mortgages. Speaking from experience, I can tell you that taking care of your family, paying your bills, and paying two mortgages at once is a tough task. 

2. When you can’t qualify for two mortgages. If you have to carry two mortgages, your debt-to-income ratio will be much higher, and that will make it harder for you to qualify for a mortgage of similar value when purchasing your next home. Getting your first home sold can clear up your debt-to-income ratio and give you a better chance to write a competitive offer. 

3. You’re buying in a competitive market. Being able to write an offer that’s free of any contingencies is fantastic, but it’s much tougher to negotiate with a seller when you tell them that your home has to sell first before you can write an offer. Put yourself in their shoes: Would you want to accept an offer that was contingent on another home selling? The risk there is substantial. 

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Speaking from experience, I can tell you that taking care of your family, paying your bills, and paying two mortgages at once is a tough task.

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4. You’re selling in a sluggish market. The real estate market can slow down during certain times of the year, so if you buy before you sell during one of these downturns, you risk having your current home on the market for an extended period while carrying two mortgages. Additionally, you might end up having to sell for a lower price. 

If you have any questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.