There are no real rules on this subject.
Let’s say that you have decided to begin looking for a new home and are faced with the decision of when you should put your existing home on the market.
Controversy and debate always surround this question!
Apparently, people who are faced with this question think that they should first find their next house and put it securely under contract. There is good grounds for this choice, although it is often the least prudent option of the two choices that are available.
By first finding your new home, you will:
- Know how much money (or equity) you will need to take out of your existing house in order to afford the new one.
- Know when you will need to finalize the sale of your current house in order to move into the new one.
- Know that you will have somewhere to live when you move out of your existing house.
Although the logic behind these reasons is more than sound, most people who are experienced in “moving up” or “upgrading” to another house will argue that it makes more financial sense to list your house first, and then begin the house hunting process.
The following scenario will help to demonstrate the serious consequences that can occur when someone commits to buying a property without having started the process of selling their current house.
Our next post: Finding a new house before you sell – A Case Study