Why Sell Before You Buy
One of the first decisions home sellers must make is about timing. This immediately raises the question of whether it is more prudent to buy and then sell or to sell and then buy. The reality as I see it is it's almost always better to sell first. While some reasons for this are obvious, there are other lesser-known factors that make the advantage of selling prior to buying a new home evident.
1. Unlock Necessary Capital
Many homeowners require the capital from their equity in a home sale in order to make a down payment on their next home. Selling first provides that capital and removes the discomfort for sellers who would prefer not to own two homes (and be responsible for two mortgages) at the same time, even just for a few days. Most Americans can't afford - or can't qualify for - a mortgage to purchase their new home if they have not sold their old home prior to the purchase of the new one.