Should you buy or sell your property first? Each option has its own benefits and risks. By carefully considering the pros and cons, and planning for contingencies, you’ll be able to make an informed choice.
By selling your property before you’ve found another one, you’ll know exactly how much you’ll get for it. This will give you a clear idea of how much money you have available to purchase your new home.
You may feel an urgent need to find a new home. However, keep in mind that you will have all the information you need to make a solid promise to purchase. For example, knowing when the buyers of your home will move in will help you determine when you want to take possession of your new property. If these dates do not coincide, you can always opt for a temporary home.
By buying first, you will know in advance your new address, the exact cost of your new home, the date you will own it and the date of the transaction. You will be able to take these elements into account when you receive a promise to purchase your current property.
It is also possible to make a promise to purchase conditional on the sale of your property. In this case, it is possible that the owner of the property you are interested in will receive another promise to purchase without any conditions. In order to give you priority, he will ask you to withdraw your condition. You will then have the choice of buying that property before selling your own, or withdrawing your offer.
In any case, it is a good idea to have a temporary source of financing in case your current property does not sell when you sign the purchase contract for your new property.