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Real Estate Market Consumers’ Age-old Question: Buy or Sell First?

Saturday, March 15, 2014

 

Residential real estate is gaining stability in concert with the recovering U.S. economy. Consumers, drawn by one of the most attractive buyers’ markets on record marked by historically low interest rates and lower home prices in many areas, are returning to the market to move up, trade down, improve location and otherwise enhance their share of the American Dream. In Rhode Island, we are now just starting to feel the stability.

When it comes to home buying, the ideal situation would be to find a new home, just as you receive an offer on your existing home. You would then be able to close concurrently and move into your new home a few days prior to closing on your previous home. This does happen more often than not, but anyone looking to buy a new home needs to consider all the possible scenarios.

Should you buy or sell first? There are many schools of thought on this subject. Ultimately, it depends on you and your situation. For instance, can you afford to pay two mortgages in the event your previous home does not sell by the time you move? Would you consider a bridge loan (a short-term, high interest loan that let you borrow against the value of your old home to covers the bills until you secure the new, larger loan)? Are you willing to move twice to find the home of your dreams if you sell first and can't find the dream home fast enough?

This is where the advice of a real estate sales professional is invaluable. Real estate sales professionals know the current market conditions. They are trained and experienced in working with home buyers and sellers to determine an ideal time to buy and sell.

It is generally less stressful to sell your home first, because you won't have to worry about owning two homes at one time. The market will dictate how long it will take your home to sell, as will your location and the time of year. As a rule of thumb, it is a good idea to put your home of the market as far in advance as possible when purchasing a new one. But, since interest rates are low and confidence is returning to the market, there’s a good change your home will sell faster if priced properly. (Again, your real estate professional’s advice is critically important here.) In that case, you may want to purchase a new home first.

What if your present home sells before you find a new one, putting pressure on you to find the right house for you more quickly? You may then decide to make an interim move or request to rent back your home for a specified amount of time as you continue to look for your new home. Those may be worthwhile options if you have your heart set on a specific location or type of home or if you are purchasing a home that is under construction.

If you buy a home before selling your present home, you may end up with two mortgages. Under those circumstances, you may be able to apply for a bridge loan to assist you in making two mortgage payments until you sell your first home. Your real estate sales professional can assist you in finding a lender.

So should you buy or sell first? This is a challenging question regardless of real estate cycles, yet your own circumstances and a knowledgeable real estate professional will help you make the right decision

This column is part of an ongoing sponsored content series with Prudential Gammons Realty.

 

Related Slideshow: 10 Great RI Houses That Just Came on the Market—March 13, 2014

Prev Next

Coventry

226 Shady Valley Rd

3 beds, 2 baths

$299,00

Pristine,move-in ready,1-level, energy efficient home,just steps from access to Johnson's Pond!Gleaming hardwoods,open floor plan,sunny solarium. Established gardens and tranquil surroundings.Enjoy your own piece of paradise-yet minutes from 95!

Days on the market: 2

To see more of this property, go here.

Prev Next

Glocester

86 Aldrich Rd.

6 beds, 3 baths

$499,900

Incredible views on Waterman Lake, private beach & boat ramp! Possible in-law or guest apartment. Granite kitchen, 4 beds, 2.5 baths, hardwoods & fireplaced living room.

Days on the market: 3

To see more of this property, go here.

Prev Next

Cumberland

49 Lilac St.

4 beds, 3 baths

$299,000

Young brick front colonial with 4 beds and 3 full baths! Beautiful gourmet kitchen! Hardwoods! C air! C vaccum! Granite and much more! Pride of ownership! A must see! Garage!

Days on the market: 3

To see more of this property, go here.

Prev Next

Pawtucket

226 Woodhaven Rd.

2 beds, 1 bath

$169,900

Darlington delightful updated 2 bed 1.5 bath cape on a quiet corner boasts lr/fp den eat-in kitchen opening to formal dining / corner cupboards roomy beds on second hardwoods gas heat rec rm 3 season porch sprinklers garage private fenced yard.

Days on the market: 3

To see more of this property, go here.

Prev Next

Narragansett

85 Saybrook Ave.

3 beds, 2 baths

$339,900

Bright & open 3 bedroom home situated on a large private lot. Only 10 years young. Home features great space for entertainment, master w/bath, fenced yard, garage, gleaming hardwoods, deck overlooking private yard or a short walk to beach.

Days on the market: 3

To see more of this property, go here.

Prev Next

Middletown

1 Acacia Dr.

4 beds, 2 baths

$429,000

Well-maintained, spacious home in quiet neighborhood setting. Newer roof and septic system. Features include 2 fireplaces, a paneled family room and hardwood floors. Deck overlooks a large yard perfect for family activities and gardening.

Days on the market: 3

To see more of this property, go here.

Prev Next

Westerly

8 Clark St.

2 beds, 3 baths

$219,000

Ideal for entertaining. Pool, hot tub, fire pit and patio. Open spaces, kitchen with double ovens, large master bedroom w/bath, 2 fireplaces. Possible in-law. Walking to marinas and downtown Westerly and park.

Days on the market: 7

To see more of this property, go here.

Prev Next

Charlestown

78 Midland Rd.

2 beds, 2 baths

$525,000

Cute BEACH cottage in the heart of QUONNIE/EAST BEACH. Short walk to beautiful, private East Beach. Enjoy boating, swimming, fishing & all amenities that Quonnie East Beach Assoc. offers. Partially finished walkout in lower level, 1 car garage.

Days on the market: 7

To see more of this property, go here.

Prev Next

Cumberland

9 Kings Row

4 beds, 3 baths

$595,000

Exclusive Custom Built, one owner Home located on a quiet street in Arnold Mills-Close to MA Line. You couldn't build this quality of construction for this price!!! Open floor plan, nice private yard, sprinklers, optional master on the 1st and MORE

Days on the market: 9

To see more of this property, go here.

Prev Next

Tiverton

281 Riverside Dr.

3 beds, 1 bath

$474,000

Waterfront - Sakonnet River! ALL NEW! Totally Renovated! Hardwoods. New, New, New - Kitchen, Stainless Appliances, Bath, Roof, Siding, Windows, Foundation, Piers, Electric, Radiant Heating, Instant Hot Water, Icynene Insulation, Paint, and much more!

Days on the market: 9

To see more of this property, go here.

 
 

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