With such low supply in the market, should you buy first or sell first?
Here’s a question from David on Facebook that many homeowners can relate to: “Is it riskier to sell your home first without knowing where you’re buying next, or is it riskier to buy first and hope to sell quickly at a high price to avoid two mortgage payments?”
As it often is in real estate, the answer is that it depends. Your financial situation and risk tolerance play a crucial role in determining the best approach. Let’s break down the considerations.
Selling your home before finding the next one might seem risky, but it has worked for many. If you have alternative housing options, such as staying with family or friends, and your home is likely to sell quickly, this could be a viable option. Some clients have even embraced the uncertainty by temporarily staying in Airbnb accommodations while they search for their dream homes.
“You need a well-thought-out plan and strategy to mitigate risks.”
Others have taken more unconventional routes. Imagine selling your house, unable to find a new one, and deciding to embark on a journey across the country in an RV to discover the perfect place to settle down. The key here is assessing your ability to handle uncertainty and stress.
On the flip side, buying before selling has its own set of challenges. With a limited housing supply and fierce competition, securing your next home isn’t guaranteed. Even if you find a property, you may be one of several potential buyers, increasing the risk of losing out.
The current real estate landscape is characterized by the ability to sell quickly but facing difficulties finding a new home. This imbalance requires a well-thought-out plan and strategy to mitigate risks. Entering the market impulsively can lead to stressful situations and challenging decisions. The key to success lies in understanding your personal situation, stress tolerance, and having a well-defined plan. If you’re contemplating a move in this challenging market, ensure you have a strategy in place. Feel free to reach out to me on Facebook, through text message, or a phone call for personalized advice tailored to your unique situation.
