Which Comes First?
There is no single answer to this question and instead the answer will depend on you, and your individual situation. The fact is no one can definitively tell you how long it will take to locate a buyer for your home and thus you will need to evaluate each of your alternatives, taking into consideration the effect each scenario will have on your (1) finances, (2) negotiating position and (3) moving-day timeline.
Buying before selling
If you choose to buy a new home before you sell your current home, you may have to pay on two mortgages until your former home sells. A bridge loan can ease the strain of double mortgage payments; however, you generally must have sufficient equity in your current home to qualify.
Alternatively, you could make the purchase of your next home contingent upon the sale of your current home, however, in a strong housing market (Seller’s Market), the seller is less likely to accept such an offer. The advantage of buying a home before you sell your current one is that you have more time to look for your new home without the added pressure of moving.
Selling before buying
You’re likely to be in a stronger bargaining position for your new home if you put off serious home shopping until after you’ve accepted an offer on your current house. Another advantage of waiting is you’ll have a better idea of how much equity you can put into your next house.
The disadvantage of this strategy is the added pressure of needing to find a new home quickly. Also, you may not be able to negotiate a lower purchase price if the seller knows you have time constraints.
In the end, only you can decide but rest assured this is a common situation and one agents, lenders and title and escrow companies have plenty of experience in arranging contracts and loans so that the two transactions dovetail smoothly.
If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!
The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley 43209 Columbus 43201 43206 43214 43215 Delaware 43015 Dublin 43016 43017 Gahanna 43219 43230 Grandview Heights 43212 Hilliard 43026 Lewis Center 43035 Marysville 43040 43041 New Albany 43054 Pickerington 43147 Powell 43065 Upper Arlington 43220 43221 Westerville 43081 43082 Worthington 43235