Not everyone is buying OR selling, some are
doing both
By: Chris Brown
As if one real estate transaction is not hectic
enough… many of us end up needing to sell one
place in order to move up to the next… this is the
“real estate catch 22”. Do we buy first?? Do we
sell first?? If we are fortunate, these events
occur at the same time, but that is not always the
case. The problem is trying to determine if it is
worse to end up “temporarily homeless” because you
sold first, or financially strapped because you
bought first. Conventional wisdom states that IF
you can’t make them happen simultaneously, it is
better to sell before you buy. The rationale? If
you sell first, you don’t end up at a disadvantage
at the negotiating table. This happens by feeling
pressured to accept something lackluster for your
current home due to your impending closing on the
new home. There are several providers of
short-term, furnished lease properties that can
fill the gap while you find the new dream home if
needed. The purpose for finding a furnished
property is for the simplicity in moving. Few
people I know want to pack and unpack twice and a
few months storage is a small price to pay for the
convenience. (For those that enjoy packing, there
are support groups available.) And yes, if you
were wondering… the two scenarios DO affect the
financing angle as well. Having moved on from the
first home does help in the debt-to-income ratios
that lenders use to qualify you and in the funds
that you have available towards the down payment
of the new place… both help in the rates that will
be available to you.
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