Which comes first-the purchase or the sale-is the greatest dilemma facing homeowners planning to move-up. If you choose to buy first, make sure the offer to purchase is conditional on selling your current house. That way, if you sell your house, both deals proceed; if not, the deal is off, and you won’t be stuck with two homes.
Selling first, though, will give you considerable peace of mind. Knowing how much money you’ll get on the sale will help you establish a price range for the new home. Selling first allows you to negotiate the purchase more vigorously, too, since unconditional offers carry a lot more weight with sellers.
Market conditions are another important consideration in deciding which route to follow.
- In a seller’s market, you’ll probably do better selling after you’ve bought.
- But in a buyer’s market, it makes more sense to sell first, and then buy.