Two major factors to consider:
1. What is the current market condition in your neighborhood? Is it a buyer's market (with more homes for sale than buyers) or is it a seller's market (with more buyers than homes for sale)?
2. How flexible are you with regards to timing and finances? Perhaps you have heard the quote, "Time, quality, or money, pick any two". But you certainly cannot have it all. The scenario below will help you determine which is most critical to your unique situation.
Prioritize your greatest fears, but have a backup plan.
Sell first and leaving you homeless!
Backup plan: RENT - Rent back your own home from the seller, or rent elsewhere for a short term period until you find and close on your dream home. If you rent, you may consider renting in an area you are considering moving to, allowing you to experience the neighborhood.
Buy first and carry two mortgage payments
Backup plan: BRIDGE FINANCING - If you can afford this - great. But, for most people, assuming you qualify for bridge financing to purchase the new home the cost could be substantial.
Sell first and settle for a less than your dream home
Backup Plan: RUSHED PURCHASE - If renting as a temporary solution does not appeal to you, you may have to settle for a home that is not exactly your dream home. The market conditions, number of homes for sale, and market trends will help greatly impact your decision.
Make an offer on a home without selling first
Backup Plan: CONTINGENCY CLAUSE - Purchase the new home with a contingency clause, and risk losing the home if the contingency to sell fails. This option exists only if the seller is willing to accept the contingency of the sale of your home. It is the market that drives this. This option is more likely to be accepted if it is a buyer's market (plenty of homes for sale and too few buyers).
A home sale contingency is a contingency clause frequently included in a real estate sales contract (or an offer to purchase real estate). With a home sale contingency included, the transaction is dependent (or contingent) upon the sale of the buyer’s home. If the buyer’s house sells by the specified date, the contract moves forward; if it doesn’t sell by the specified date, the contract is terminated (but may be renegotiated).
Regardless of your priorities; Time, Quality, or Money speaking with an experienced Real Estate agent, who knows the market and current conditions can guarantee you reach your long term goals.
Contact Arius today for a free consultation and let us help you make an informed decision.