Navigating the Real Estate Market: Buy or Sell First? | Your Trusted Real Estate Expert
To all of my wonderful friends and Customes in El Paso,
The current real estate market is characterized by low inventory and high demand, both of which are driving up prices. It is simple to make a sale, but a significant challenge to acquire. There are a lot of homeowners who are in a position where they have to finish both transactions within a short period of time. The answer to the question of which one should be done first depends on a number of different criteria. There are benefits and drawbacks associated with every option, but which one is best for you depends on the details of your circumstance.
Before you even begin the process of selling your current house and purchasing a new one, there are a few important questions you need to ask yourself, including the following:
- Do you think you'll be able to afford two mortgages? The buy-first, then sell strategy is the one that the vast majority of individuals go for when given the choice. Yet, it is tough to qualify for two mortgages at the same time, which can add a great deal of stress to your current circumstances. If you are able to make both payments for a period of many months, you will have plenty of time to look for a new residence while also preparing your present home to be listed for sale at the highest possible price.
- What kind of a house are you looking to purchase? You can't always afford to sell first from a time viewpoint, especially if you have a specific neighborhood or school district in mind when you're looking to buy a home there. It is possible that you will need to make a conditional offer, obtain a bridge loan, or open a home equity line of credit. Getting the house of your dreams might be worth the effort. It may make more sense to sell your current home before looking for a new one if you do not have a very detailed wish list for your next residence. There are many reasons for this.
- Are you interested in making two separate moves? The vast majority of people do not, yet you might not have a choice in the matter. If you need the money from the sale of your home to fund your following purchase, you may be required to locate temporary housing while you look for your next property while you are in the process of selling your current home. Because of inflation, rents are getting more expensive, thus doing so is not always the best course of action. On the other hand, depending on how high demand is in your particular price range, you might be able to negotiate a rent-back agreement with the buyer who purchases your home and thereby avoid the dreaded double move. In this scenario, the buyer would purchase your home and then rent it back to you after they move in.
In the past, I've been able to assist numerous customers just like you, and I'd be pleased to do the same for you. There is not just one way to sell something before you buy it or buy something before you sell it.
Do not be hesitant to get in touch with us by phone or email if you have any inquiries regarding the real estate market in general or your particular circumstance. I hope that we will be able to communicate again soon.