Should You Buy a New Home Before Selling Your Current One?

Welcome back to “The Duo Talks”, the monthly series where my wife Angela and I take questions about what’s going on in the real estate market from radio show listeners. We aim to give them the best advice possible to make informed decisions about real estate.

The question of the week to answer is: Why should you sell your house if you’re worried about finding another one to buy?

This is a fear a lot of people have. The most recent statistics from the Tampa Association of Realtors show that we only have 2.4 months of inventory, which is a record low over a decade span. Today, we have some practical advice about how to get the best for yourself out of this real estate market.

In a competitive market like this, it may be a better decision to buy a home before you sell. There are consequences that you might want to keep in mind, however. One is that you might, for a short period, have to make two mortgage payments.

But there is the convenience factor of not having the hassle of dealing with the home on the market. Additionally, buying first can allow you to search for and buy the right house without being pressured for time. If you have the ability to buy first in this market, it’s something I’d consider.

In a competitive market like this, it may be a better decision to buy a home before you sell.

You might worry about the ramifications of having to pay two mortgages at once. On the alternate side of that worry, however, is that if you rush to buy a house, you might pay too much or just buy a house that is wrong for you. The competitiveness of the market can cause people to skew their judgment.

Some people really just feel more comfortable about selling their home before buying, and there are ways you can do that, too.

First and foremost, hire us. We can do a guaranteed sale where the home is sold in 29 days, or we’ll buy it. We can also give you an immediate cash offer for your home. In this situation, it doesn’t necessarily mean that you’re going to get top dollar, but you will have the convenience.

Another option would be to sell your home and move to a temporary location until you can find a new home to purchase. You may not like that idea, but is it worse than buying the wrong home and having to live there long-term? Maybe three months in an apartment is a decent trade-off.

Just make sure that you take your time and buy the right house. Don’t get caught up in the emotion and pressure of the existing real estate market. A competitive market like this one makes it hard for sellers to accept offers from buyers who say that they need to sell their home before they can close on the seller’s.

Opportunities like that are few and far between. If you do manage it, you probably will end up overpaying and you won’t get great terms.

If you have questions about this or other real estate topics, feel free to give us a call or visit www.theduncanduo.com. We’d love to give you the right advice for your specific situation.