Real Estate in Houston: The PROS and CONS of Selling First or Buying First

Deciding whether to sell your current home before buying a new one is a major financial and logistical consideration for homeowners. Both approaches have advantages and disadvantages and the best choice can depend upon current market conditions,

financial circumstances and personal preferences. Let's view the pros and cons of

selling first or buying first to aid you in making an informed decision.

Pros of Selling First:

• Financial Certainty -Selling your home first enables you to know exactly how much money you will have when purchasing a new home. This can aid in establishing your budget and help avoid financial issues.

• Stronger Buyer Position - With cash available from the sale, you become a more desirable buyer, especially in competitive markets. Sellers prefer buyers who do not have a home sell contingency included in their offer.

• Avoid Two Mortgage Payments - By selling first, you will not have to be stressed about covering double mortgages if your old home takes a while to sell.

• No Pressure to Sell Quickly - You can take your time and negotiate better sell terms with buyers without the urgency of needing to fund your new home.

Cons of Selling First:

• MarketingFluctuations - If the market changes between your sale and purchase, you could find yourself in a less favorable position when buying.

• Temporary Housing Needed - fI you sell before purchasing a new home, you may need short-term housing which can be inconvenient and/or costly.

• Pressure to Purchase a New Home - You may feel rushed to find a new property, leading to compromises on price, location or features.

Pros of Buying First:

• Smooth Transition - Buying first permits you to move directly from your old home to the new one, avoiding the inconvenience of temporary housing.

• Less Pressure in House Shopping - Without the stress of having sold your home, you can take your time to find a property that fits your needs perfectly.

• Securing Your Ideal Home: In a hot market, finding a home you love and purchasing it before selling can prevent disappointment fi your desired property gets snapped up by someone else.

Cons of Buying First:

• Possible Lower Sale Price: fI you're anxious to sell your old home to avoid double carrying cost, you may accept a lower price than you desire.

• Financial Strain: fI your current home does not sell quickly, managing two mortgages, property taxes and maintenance costs can be a financial burden.

• Contingency Offers are LessAttractive- Many seller prefer buyers who do not

  require their own home to sell first, making it harder to secure your new home ni a competitive market.

Which Strategy is Best for You?

The best approach depends on various factors, including the current real estate market, your financial situation and your risk tolerance. In a buyer's market, selling first is often the safer choice, as homes may take longer to sell. In a seller's market, buying first can be advantageous, as homes sell quickly, reducing the risk of carrying two mortgages.

Ultimately, working with a real estate professional can help you navigate these challenges and make the best decision for your situation. Whether you choose to sell first or buy first, careful planning and market awareness will help ensure a smooth transition to your new home.

Email me or call me for all of your Real Estate Needs in the Greater Houston area!

Email: cathy@houstonshomefinder.com

Phone: (713) 899-8706