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Savannah Georgia Real Estate Advice: Should You Buy or Sell Your Home First?

David Lasley, Your Savannah Area Realtor

For homeowners aiming to sell their home and buy another, it's the classic real estate, which came first, the chicken or the egg, question - buy or sell first?

If you sell first, you may find yourself under a tight deadline to find another house, or be forced in temporary quarters. If you buy first, you may be saddled with two mortgage payments for at least a couple months. You may need the money from the sale of your original home in order to pre-qualify for a loan for your new home. You may be facing a job relocation and need to sell quickly.

There are many variables involved; there is no universal correct answer. It basically comes down to your specific circumstances.

One school of thought is that there is generally less pressure and stress when you sell first, which lessens the risk of owning two houses, or none at all.

If you have the money to make two mortgage payments, the pressure is off. But if you need to sell your house in order to qualify for a loan, then you have no choice - you'll have to sell first.

You can write a contingency contract, but if you really want the home, you'll pay more of a premium, if the seller will even entertain a contingent offer. If you go ahead with a contingent offer, then you may end up settling for less for the house you're selling in an effort to get it sold quickly.

Another advantage to selling first is having the time to get pre-approved for your mortgage and see all the housing options in the price range you'd like to
buy.

When your selling house is in contract, pick the three best homes of those you've viewed and prepare to make an offer on the one that best meets your needs. The worst that can happen is the right home isn't available, and you end up in a short-term rental with the cash in your pocket and pre-approved financing for the balance you need. So you look like a cash buyer when you make an offer on the home you finally decide on.

But brisk selling conditions in some parts of the country require more aggressive tactics.

A strong market dictates that homebuyers focus on buying first, and selling later. In a fast market, buyers may obtain a mortgage commitment that is not contingent upon selling their existing homes. But, beware that a sale could drag on longer than you might expect.

Selling first isn't the perfect solution. Some of the issues that may come up include:
Being forced out of your house before you have a new place available. Where will you live? Where will your kids go to school?

Having to move twice. Do you want to go through the hassle? Where will you store your extra furniture while you live with family and friends or rent an apartment?
Not being able to find a house you like. How long are you willing to live in temporary quarters until you find a suitable house?

Whichever way you go, it always seems to work out in the end. You won't be homeless.

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