BUY BEFORE SELLING?  or SELL BEFORE BUYING?

There is no cut and dried answer to this question; your personal circumstances will determine the correct answer. If timing was not involved it would certainly make the answer a bit more simple.  The following thoughts might help you come up with an answer that suits your situation.

Read Also:  So you want to purchase a Del Mar Home!

Waiting until you have a sale until you buy.

This might mean that you miss out on that ideal home you had your heart set on.  You'll also have to figure out what you will do it your homes sells before you buy a new one.  If you don't have the funds to rent for the interim, then can you store your possessions and "camp out" at your Mom's for the time it takes to buy a home?

Buying a new house before the old one is sold.

Unless you buy a house contingent on the sale of your home, you might end up owning two houses at the same time.  It goes without saying that having the expense of two mortgages is a tough nut to crack for most people.  In this situation you might feel pressured to sell your current house for less than market worth, which could cost you more than the interim housing costs you would have incurred had you waited until you sold before buying your new house.

Another available option should you find yourself with two mortgages is to rent out your old home until it sells.  That comes with its own set of problems.  Showing a home occupied by renters is not all that easy.  Scheduling is sometimes a problem and in most cases renters may not keep the house in "show case" order.  In addition, the new buyer might not want the hassle of getting the tenants to move out in a timely manner.

A third option would be to rent out your new home, remaining in your old home until it sells.  Hmmm, who would want to do that??

General Considerations

Buying a home on contingency is the safest option of all.  The worst that can happen is that you lose a house that you have fallen in love with.  If you buy a new home before selling the old home you might put yourself at financial risk by having to carry two mortgages.

 Read Also:  YOU HAVE MADE THE DECISION THAT IT IS TIME TO BUY

If you sell your current house and don't have a new one you risk having to find accommodations until your new one is purchases.  Double moves are expensive, grueling, and a ton of work.  But moving in with Mom might just be the cheapest option of all! In this situation!