Should You Buy First or Sell First?

 

You live in a house and you own it, but you're thinking of moving into a bigger one because you need more space.  Should you sell your current house first and then look for a new one, or should you buy a new one first then sell your current one?  This is a question a lot of homeowners ask themselves. 

It makes sense to sell your existing home first and then buy a new one because you'll know how much you can afford to spend.  Also, you won't have to make your offer conditional on selling your current house because you have already sold it.  However, what happens if you can't find a new house before your existing one closes?  You might end up settling for a house that doesn't satisfy you.  If you don't find anything in time you might be forced to rent until you find the house you want.

If you decide to buy a new house first you'll have the opportunity to look for the house of your dreams, but then the clock will be ticking for you to sell your existing one.  If the market is slow and houses are taking longer to sell, you might be forced to sell for less or you'll end up having to pay two mortgages.

In the end it's a personal decision and it depends on what you feel more comfortable with.