At first glance the question seems like an easy one, “Of course!” you might say, “better to sell the old one first, I don’t wanna end up with two mortgages!”. But there are some things you should consider before plunging headfirst into a sale.
The key to Real Estate might be Location, but for a homeowner looking to sell their property, it’s all about Timing; the real estate market is a living thing and it changes depending on many factors. So for any potential seller, it might prove beneficial to take some time and assess your local real estate market and pinpoint whether you’re in a Buyer’s Market or a Seller’s Market.
In a Buyer’s Market the offer of homes exceeds the demand of buyers, this can make the sale difficult and timely, delaying the purchase of your new home. Meanwhile in a Seller’s Market, the opposite is true, there are an abundance of buyers and not enough homes, this makes selling your property easier and the offers you will receive will be far more attractive!
Another thing to consider is the cost of temporary housing, if you don’t have any family or friends to stay with after you’ve made the sale, you’ll have to rely on rentals or Airbnb, along with the storage and moving costs that will ensue when relocating twice.
Ultimately the decision to sell your home before purchasing a new one comes down to financial situation and personal preference. Doing so can certainly present advantages: The money from the sale can be applied to the purchase of a new home, you won’t be stressed out from handling both operations at once, and of course, there’s no chance to end up paying for two mortgages!
However, if your budget allows it, keeping your old home while buying a new one, gives you more control over the manner in which you sell it, no rash decision-making that ends up costing you down the line, because you still have a safe place to fall back on if the market shifts.