You own your home, but plan to buy another. Should you sell your existing home first before signing a purchase contract on another home, or vice-versa?
Many owners feel they should locate their next home first. If they sell their existing home first, they might not have a home to move into. If they are capable of owning two homes at once, this rationale is fine.
Another solution is to locate and purchase the new home subject to the sale of their existing home. This means that if the existing home does not sell, the owners would not be obligated to complete the new purchase. That may sound like a good solution – until you turn the situation around.
If you were the seller of that home, would you want to obligate yourself to a buyer who cannot complete the purchase without selling their existing home? If a home has to be sold, doesn’t it make sense for the owners to sell their own home, rather than wait for someone else to sell theirs?
In most cases, it is wise to first offer your property for sale and have the buyer under firm contract to complete the purchase. Once you have that buyer under contract, you can feel free to locate your next home, and at that point you will know how much money you will receive and when.