Most families that are selling their home are doing so to move into a larger or more expensive property. This is referred to as “selling up”. When selling to move into a new property most people would prefer a seamless transition. While this is possible it is not always easy. There are three ways to go about selling your home to buy a new one.
Sell First, Then Buy. This is the safest option for the majority of sellers. By selling your home first before you buy a new home you ensure you have the money from your home sale and therefore know how much you can afford on a new home. While this is the safest option it does come with disadvantages. In this scenario you will need to arrange temporary housing while you look for your new home. You also can not know for sure how long the new home buying process will go on. Your temporary arrangements will need to be flexible.
Buy First, Then Sell. This scenario comes with the least complications to you and your family, but it is the riskiest. If you purchase your new home first you give yourself flexibility in moving into your new home. You can move in at your own leisure as well as to take your time preparing you old home to sell. This scenario is not for everyone as it puts a significant burden on the homeowners. If your previous home is not paid off you would be responsible financially for both properties. Even if you home is paid off you are still responsible for the maintenance of both properties. You cannot know for sure how long it will take to sell your old home as well.
Buy and Sell Simultaneously. This scenario is the goal of most sellers. It is the hardest scenario to navigate. The majority of buyers and sellers are trying to achieve this scenario and somewhere in the chain someone has to give. If you are trying to buy and sell simultaneously it is good to have a backup plan. If anything falls through you could be facing either of the scenarios above.