Is it better to sell your property or buy a new house first?
Let's find out together
30.10.2022
•2 minuti di lettura
When you have to move to a new house, for various reasons, and you have to buy a new house and sell the old one. In this situation, how should you act? First sell or first buy? Let’s find out the pros and cons of each situation.
First sell the old one and then buy the new house Selling home and then buying the next one is the most common practice, because it brings with it has a number of pros, such as:
You are going to have a defined budget for the next purchase, because you already know the price you sold your home;
you will not be forced to sell off, because you can use the time at your disposal to value your house and sell it at the right price;
you will avoid losing the deposit, you would have already paid for the new purchase, if you do not have enough cash to pay for both the new house and keep the one still unsold;
you will avoid the payment of two mortgages, if the one of your property is still active and you need a loan for the new house.
Before selling it allows you to control all aspects of the sale, such as the logistic side, or you know how much time you have to sell the house because you have agreed with the buyer. Check the economic aspect because you have a deposit paid for your house by the future owner and you can use that money for the deposit of your new property. This option gives you the opportunity to manage the purchase with more serenity, because it avoids anxieties and stress that could result from not finding the owner on time or not having sufficient liquidity.
If you sell before, you have a time limit within which to free your house to make room for the new owner, if you do not respect these times it may be that you have to vacate the house without having a place to stay and have to resort to renting for the time needed.
But do not worry if you can manage both the logistics and the economic side, playing in advance, you will only have to move from your home to the new one.
Before buy the new house and then sold the current one You’ve found the perfect home and you really don’t want to miss it, but you still have your house. Then proceed with the purchase proposal and the preliminary payment of the deposit and binding the purchase to the sale of your home.
The main advantage of this solution is not to risk having to vacate your house before the time because it is now sold and therefore having to think of a temporary housing solution. Besides, you do not give up on your dream house.
Generally, this choice seems to be preferred by those who have a certain amount of money that allows them to maintain two properties, for a certain period, and who want to manage the two transactions, of purchase and sale, separately. In other cases, it is important to be able to sell your property as soon as possible, to avoid losing the deposit of the house you want to buy. So, if you decided to apply for this option, the main disadvantages can be:
lack of liquidity to absorb the new purchase and maintain its own until sale;
impossibility to open a new mortgage;
lose the deposit of the new house if the property is not sold in the agreed time or is not the economic possibility;
having to maintain two properties.
It is difficult to explain which of the two alternatives is better, because each situation is different. So organize your sale based on the potential of your house, the liquidity it has and the time you have to manage the two operations.
