Whether you sell your home before you buy or buy before you’ve already sold is up to you, but there are some things you need to consider before making a decision either way.
When you buy a new home before you’ve sold your current home, it can be very reassuring to know that once the current property is gone, all you have to do is move from one place to another – without any rushing around looking at homes and properties. However, know that when you put an offer to buy the new house it will have a contingency clause stating that your home must be sold and the transfer of title on the home must take place before you can actually buy the new home. During the time period of placing an offer on the new house and selling your current house, other buyers could enter the picture and place an offer on the new house without any contingency clauses, making it that much more appealing for the seller. In this case, you could end up losing a home you’ve already fallen in love with, and that can be heartbreaking.
Selling your current home before buying a new one takes away the fear of contingency clauses and other buyers because you’ve already sold your current home and just need to buy another. The downside in this scenario is that you might not find a new home before you have to vacate the current home. If this is the case, sellers can ask the buyer about “rent-back,” a scenario in which the sellers (you) are able to stay in the home for a certain number of days after closing so there is time to find a new home. With rent-backs, the seller has to take over the buyer’s mortgage for the amount of time they remain in the home