Upsizing: Buy or Sell First

May 16

When it comes to upsizing your home, one of the biggest decisions you'll face is whether to buy first or sell first. Both approaches have their advantages and drawbacks, and understanding them can help you make the best choice for your situation.

Buying First

Before you decide to buy first, here’s what you need to know

Pros

Secure your dream home: By buying first, you can lock in your ideal property before it's snatched up by someone else

Less pressure: With a home already lined up, you won't feel rushed to find a new place to live, giving you more time to make a thoughtful decision
Avoid temporary housing: Buying first eliminates the need to find temporary accommodations if your current home sells quickly

Cons

Financial strain: Buying before selling means carrying two mortgages (or a mortgage and rent) simultaneously, which can strain your finances

Limited negotiation power: Sellers may be less willing to negotiate on price if they know you're under pressure to sell your current home
Potential for double move: If your current home doesn't sell as quickly as expected, you may find yourself juggling two moves, which can be stressful and costly

Selling First

Just like buying first, there are equal pros and cons to selling first

Pros

Financial security: Selling first ensures you know exactly how much money you have to work with, reducing the risk of overextending yourself financially

Stronger negotiation position: With funds from your sale in hand, you'll be in a stronger position to negotiate on price and terms for your new home
Simplified moving process: Selling first means you only have to move once, streamlining the transition to your new home

Cons

Limited housing options: Selling before buying may leave you temporarily without a place to live if you haven't secured a new home yet

Market fluctuations: The housing market can be unpredictable, and waiting to buy may result in missing out on your ideal property or facing higher prices
Time constraints: If you sell your home quickly, you may feel pressured to find a new home before your closing date, potentially leading to rushed decisions

Always Make the Right Choice for You!

All in all, the decision to buy or sell first depends on your financial situation, housing market conditions, and personal preferences. That’s why consulting a real estate agent who may have a better grasp on the current markets is always a good decision.