If you plan to buy again after you sell, you're likely wondering what should come first. You don't want to sell and be caught without a place to live - even for a short time! Nor do you want the expense of two homes.
By selling your current home first, you remove the burden of uncertainty and know exactly how much you've netted from the sale - an important consideration in determining the price range for your next home.
Moreover, unconditional offers are usually taken more seriously by sellers. By selling first, you'll negotiate the purchase price on your new home more confidently.
If you do buy first, make your offer to purchase conditional on the sale of your current home. If you don't sell within the specified time period, your offer simply lapses without penalty.
Bridge financing may also be a short term solution when buying first. Based on your credit worthiness and the probability that your current home will sell quickly, some lenders will extend additional credit on a short term basis, using the equity in your current home as security.
In a buyer's market, many people prefer to sell first to limit risk. In a seller's market, many consider buying first.
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