Quote:
Originally Posted by Vinny01
I am interested in what approach people take for moving from a home you own to purchasing a new home.
Are others taking the other approach of selling your place first then getting out in the market to purchase?
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It comes down to you doing some serious budgeting and forecasting taking into account some worst case scenarios.
Some years back we bought a new detached house 1st, and then needed to sell our townhouse. Plan A was of course to sell the townhouse, easy peasy. Plan B was if we were unable to sell the townhouse, what would that look like. I modelled out Plan B assuming we couldn't sell for 3, 6, 12, and 24 months. Or if I lost my job. Those type of situations.....
Thank god I did, because my my two other neighbors were dicks. To make a long story short - I was unable to sell and had to put Plan B into effect or else eat a 20% price reduction. Luckily my Plan B gave me enough time to find a trusted renter (in law) to live in that gave me 2 years for me to sell at the price I wanted. While stressful, knowing exactly where I stood financially gave enough comfort so as to not be in a puddle of anxiety....
Ultimately you need to look at the 'time' you have under Plan B vs taking a haircut on your property to move it and think about whether that's a risk you can live with.