Should I buy a home or sell my current home first?:

The ideal sitation:

When it comes to buying a Denver CO area home, the ideal situation would be to find a new home the moment you receive an offer on your existing home. You would then be able to close at about the same time and move into your new home a few days prior or just after closing on your previous home. This does happen more often than one might think, but it can be risky and so take steps to plan ahead and minimize your risks.

Things to consider:

Should you buy a home you want or sell your current Denver CO house first? There are many ways to go on this and depending on who you talk to, you could get many different answers.  First of all consider if 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 if you need to and if you sell first and can't find the dream home fast enough?

Get professional help:

This is where the advice of a professional real estate agent is invaluable. Real estate agents 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 and they work in the buying and selling homes business on a daily basis so they see what works and what doesn't.

Safe bet:

General rule of thumb is that it is less stressful to sell your Denver CO area house 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 and current market conditions are slower so play it safe.  Generally it is a good idea to put your home of the market as far in advance as possible when purchasing a new one.  But, with low interest rates and if you find the home you just can not replace in any way, you may feel it is a great option.  

Quick sale, now what?

What if your current Colorado house sells before you find a different Denver Co house to purchase?  This could put high levels of pressure on you to find the right house more quickly?   I guess there is a possibility that an interim move or request to rent back your home for a specified amount of time could be an option to consider as you continue to look for your new home but you would have to negotiate the terms and get agreement from all parties.

Two mortgages is not for everyone:

If you buy a home before selling your current home, you may very well end up with two mortgages. If you can qualify for the loan, you may be able to apply for a bridge loan to assist you in making two mortgage payments until you sell your first home but this can be risky if the market is slow to sell your home. Your real estate sales professional can assist you in finding a lender and with statistics you can gain a better understanding of the market and how long it may take to sell your home given the current market conditions.

Every situation is different:

So should you buy or sell first? There is never a good answer that fits all people and all situations.  Consider your circumstances and a knowledgeable real estate agent should be able to help you make the right decision.  If you would like to discuss the market, your current property, timeframes or if you are interested in finding the right Colorado House first, please call Frank Nuebel at 720-273-3514 to discuss your circumstances and what may be best for you.

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