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Should You Buy Before You Sell?

Whether you are a natural risk taker or someone who prefers to err on the side of caution, home buying and selling will always be a little bit of a risk. The real estate market has its ups and downs and as a seller and buyer, you want to capture the market when the pendulum swings in your direction. Maine’s home sales have gained strength and buyers are now more capable of securing mortgages for the homes that they desire. If you are thinking of selling your own home and buying another you may be in the precarious situation of deciding whether to sell your home first or jump on a good, new deal.

Why the research is important
Selling your home is an involved experience, and you should always have a properly vetted real estate agent on your side during this process. The first thing that you want to do is figure out the market in your neighborhood. Learning the going rates for comparable will help you to make the proper based on your current financial situation. If your home is in demand, but is not selling for as high a price as you would like, you may need to rethink the amount that you spend on your next home. If your home is likely to move like hotcakes for a price higher than listing, you will benefit greatly from cashing in on the sale immediately. Have your real estate agent go through the information to understand where you stand to benefit.

Cash on hand is best
One of the best ways to get a good deal in the Maine real estate market is to have cash on hand. If you elect to sell your home before you commit to purchasing another home, you will have the elevated positioning of being able to commit to purchasing a home with secure financing. Sellers prefer to work with buyers who have the cash to commit to the purchase since most real estate deals fall through due to faulty financing. Since cash is king, selling your family home prior to purchasing a brand new property is a good financial step to make.

Determine how quickly inventory goes
The one time that it may pay to purchase real estate before you sell your old home is if your market is moving fast. If you are looking for large single family homes and these tend to be taken off the market in less than a week after listing, it may be best to throw your hat into the ring when your dream home is listed. With a booming real estate market and proper planning you can purchase your new home then make sure to find buyers for your old space with a short gap in time. Find out the best course of action for your personal southern Maine home purchase and sale with your trusted agent.