Boston Homeowner's Real Estate Dilemma:

If you're ready to make a move, one big question can trip up even the most seasoned homeowner: should you buy your new home first or sell your current one? Both options have their pros and cons, and the right choice depends on your situation. Here’s a breakdown of the factors to consider to help you make the best decision for your circumstances.

Buying First: Pros and Cons

If you find your dream home before your current house sells, the temptation to buy first can be strong. After all, who wants to risk missing out? But there are a few things to keep in mind before diving in.

Pros:

• You’ll Have a Place to Go: Buying first means you won’t have to worry about finding temporary housing between selling and buying. You can move straight into your new home without the hassle of storage units or short-term rentals.

• You Can Take Your Time to Move: When you already own your new home, there’s no rush to pack up and move out immediately. You can transition on your schedule, which makes the process less stressful.

Cons:

• Financial Stress: Owning two homes at once means you’ll be carrying two mortgages (unless you buy outright), which can get expensive quickly. You might also have to dip into savings or secure a bridge loan to make it work.

• Pressure to Sell Quickly: When you’re paying for two homes, you might feel pressured to sell your current one quickly, even if that means accepting a lower offer than you’d like.

Selling First: Pros and Cons

On the flip side, selling your home first offers some financial security, but it also comes with its own set of challenges.

Pros:

• No Double Mortgage: When you sell first, you won’t have to worry about carrying two mortgages or taking out extra loans. You’ll know exactly how much money you have to work with for your next home, which can simplify the buying process.

• Stronger Buying Power: With the proceeds from your sale in hand, you’ll be in a better position to make competitive offers, especially in a hot market. Sellers tend to prefer buyers who aren’t relying on selling their home to close the deal.

Cons:

• Temporary Housing Headache: If you sell your home before you’ve found a new one, you’ll need to figure out where to live in the meantime. This could mean renting a place, staying with family, or putting your belongings in storage—all of which can be a hassle.

• Feeling Rushed to Buy: Once your home is sold, you might feel pressure to find a new place quickly, which could lead to buying a home that isn’t quite right just to avoid being stuck without a place to live.

So, What Should You Do?

There’s no one-size-fits-all answer, but here are a few key factors to help you decide which option is better for you:

1. Current Market Conditions

Is it a buyer’s market or a seller’s market? In a seller’s market (where there’s more demand for homes), selling first can give you a bit of an edge, as your home is likely to sell quickly. In a buyer’s market (where there are more homes than buyers), it might take longer to sell, so buying first could make more sense.

2. Your Financial Situation

Do you have the resources to cover two mortgages for a while, or is selling first the safer financial move? If money is tight, selling first might be the better option to avoid financial strain. If you have enough flexibility to manage owning two homes for a bit, buying first could give you more control over the timeline.

3. Risk Tolerance

How comfortable are you with uncertainty? If the thought of carrying two mortgages or potentially rushing to buy stresses you out, selling first might be the safer bet. On the other hand, if you can handle some financial overlap or waiting to sell, buying first gives you more time to find your ideal home.

Bridge Loans and Contingency Offers

If neither option sounds ideal, there are a couple of alternatives worth exploring:

• Bridge Loans: A short-term loan that covers the gap between buying your new home and selling your old one. This can help you buy first without feeling rushed to sell immediately.

• Contingency Offers: You can make an offer on a new home contingent on selling your current one. This arrangement can protect you from owning two homes at once, but not all sellers will accept contingency offers—especially in competitive markets.

Deciding whether to buy or sell first depends on your personal situation and the current market. Weigh the pros and cons, consider your financial flexibility, and think about how much risk you're comfortable taking on. With a clear understanding of your options, you can make a decision that fits your needs and leads to a smooth move into your next home.