Buy or Sell First?
The toughest decision, when considering a purchase of another home, is deciding whether to buy a new home or to sell your current one first. 

Ideally, you would buy your new home first and sell the current one later. This generally works if you don't have to borrow the money, but most people do. 
So, if you are like most people, your lender will determine how much money you can borrow, and on what terms. 
Typically, home buyers want to use the equity from their current home as a down payment for a new one. In this situation, a lender will require that you sell your home before buying a new one. This means that you must have a binding offer to sell your home before receiving more funds for your next purchase. This is where the hassle begins. 
How do you ensure that your home is sold in time to take possession of your new one? 

You can try to find a seller who is willing to accept the fact that you can only buy their home if you can sell yours. As you can imagine, this is not a very good scenario for any seller because there is no way of knowing when your home will sell, and if it will sell at all. Additionally, the seller may lose other buyers while waiting for your home to sell. In a normal market sellers are not likely to agree to this arrangement and you may be losing out on your dream home.

A better option is to sell first before shopping for a new one. A clear advantage is that any seller will be much more willing to negotiate if they don't have to wait for your home to sell. Additionally, once your home is sold you will know exactly how much money you have for a new one. 

But what happens if you can't find a suitable home?  

In this unlikely scenario, you will require temporary accommodations, however inconvenient, this is still a cheaper option than withdrawing from a purchase agreement due to a lack of funds.

Like with any undertaking, preparation is everything. Don't take chances when you don't have to. Selling a home or buying one is no different. In some cases it takes months to get ready. Every situation is unique and this is why it is critical that you consult with professionals before it is too late. 

You need a personalized plan of action, suited to your needs and resources. Call, text (519-778-0737) or email (rad@radkostka.com) for your FREE consultation today.