Buy first, then sell? Or sell first, then buy?

For anyone that currently owns a home and is looking to purchase another one, this is always a big question. Both options have their pros and cons.

Reasons to buy and then sell

1. You don't have to move twice.
2. You don't have to get temporary housing like an apartment.
3. You are not pushed to buy something by a certain date. As you are already in a house, you don't have a lease expiration date to worry about.
4. You can sell your house while you are not living there. This is much easier than living in the house and always keeping it "show ready".
5. You don't have to buy anything. If you don't find any new house that you like enough to buy, you don't have to buy one as you're already in a home.

Reasons to sell and then buy

1. You don't have to make two mortgage payments. If you bought a new house and your previous house didn't sell for a while you would end up paying for two houses at once.
2. You may be able to get a little more for your house as you won't be as rushed to sell it.
3. You may have to go this route to qualify for the new home loan. If your income isn't enough to qualify with both house payments, you wouldn't be able to buy first and then sell.
4. You may be able to afford a higher priced home if you sell first.
5. You may feel more comfortable during the buying process knowing that the other house is already sold.

Both are good options. Some people prefer the flexibility with risk over a little more work but more secure. Please let me know if you have any questions on which route is best for you. billconover@america-lending.com