This all-too-common homeownership conundrum can feel a little bit like the classic “chicken or the egg” dilemma: Should you list your home first, and then search feverishly for a new one when it sells, or should you purchase a new home, and hope that your last home sells quickly? Of course, there is no perfect (or easy) answer, but it’s especially important to consider the strong seller’s market occurring in much of Greater Philadelphia.
Let’s consider a few possible scenarios to determine which will work best for you and your family:
1. List first. We often recommend listing first for homeowners who have unique or higher-priced homes that may take longer to sell, if interim housing would be challenging, or if the possibility of holding two mortgages at once would be impossible. Often times, we are able to arrange the settlement (both the sale of the first house, and the purchase of the new home) on the same day – but unfortunately it doesn’t always work out so easily. Some sellers opt to rent-back their original home from the new buyers, whereas others choose to stay with friends and family or rent a short-term apartment until settlement day for their new place.
2. Buy first. Many homes are selling quickly in the early spring market, and moderately-priced ($150-500k) properties in strong school districts are especially likely to sell fast. If your home is likely to sell quickly (and your EveryHome agent can help you with determining this), it might be best to first shop for your new place, and then list your current home. We’re especially likely to recommend buying first to clients who are looking for very specific homes or in specific neighborhoods. Additionally, if the possibility of carrying two mortgages for an extra month or two doesn’t concern you (in the event that your original home’s settlement occurs after your new home’s purchase), if may be especially easy to buy first.
To learn more, be sure to consult your EveryHome agent. Here at EveryHome, we regularly help homeowners sell their homes and buy new ones – on the very same day! If you don’t already have an agent, please be sure to call us at (215) 699-5555. We are more than happy to guide you through every step of the process.