This is a question we hear over and over at Match Realty when a client is planning a move. The interesting thing is, there is no right or wrong answer. It is case by case and also depends on one’s appetite for risk along with motivation.
The best strategy could also depend on which type of market you are in. In a buyer’s market, there are more properties on the market than active consumers looking to buy in the region. In a seller’s market, there is a shortage of properties for sale and many potential buyers looking to purchase. It ultimately comes down to basic economics and the law of supply and demand.
In Chatham, we are in a seller’s market as we are faced with a shortage of homes available to purchase. In this type of market, we see many clients selecting the first option as there is tough competition on the buying end and clean offers typically prevail. In a buyer’s market, we see a lot of selling first and then purchasing as you can take your pick from a pool of abundant inventory options.
There are risks with either option. We recommend you discuss your alternatives with your Match Realty Sales Representative before moving forward to assist in weighing the pros and cons.
Selling first gives you the financial comfort of knowing exactly what the sale of your property will generate which will help tremendously in knowing what your purchasing budget will be. This approach may also help eliminate the stress of potentially owning two homes for a short period of time.
Buying first will ensure that you are not homeless and on the hunt for short-term living accommodations. This approach may cause additional stress if your original home is not selling or not bringing in the price you had in mind. You may be forced to settle with the best offer if you cannot afford to hold both properties.
Regardless of which route you take, we strongly suggest that you buy and sell in the same market (timing) to reduce the risk of market fluctuation.