Buying a home, whether it’s your first, second, third, or fifth, is a big commitment. Similarly, selling a home is a choice that requires careful consideration. Doing both at the same time is something that many buyers and sellers feel overwhelmed by. On their own, there are so many steps to buying and selling, and the decisions you make during the process have huge implications for the outcome. With the outcome being your family’s living situation, your finances, and your future.
So, what’s the right order to do things when buying and selling? It’s a question we get asked fairly often. In this post, we’re sharing the pros, cons, and considerations of the buy-first vs. sell-first debate.
How the Market Plays a Role
The decision to buy first or sell first hinges on a variety of different factors, but one of the most important is the market itself. The type of market we’re currently in will have a big impact on your decision. Here’s why:
- Seller’s Market – A seller’s market offers more favorable conditions for sellers. This usually means there are more buyers in the market than there are available homes for sale. Properties sell quickly, and competition is high. When demand goes up, we often see prices follow.
- Buyer’s Market – This type of market is favorable to buyers. There are more active listings than there are buyers actively looking, which gives buyers an advantage. They get more selection and can often negotiate more favorable terms during the transaction.
- Balanced Market – As the name suggests, this market is balanced, meaning the number of active buyers is on par with the number of active listings. Neither buyers or sellers have a huge advantage in this type of market.
Based on this, you can see why different market conditions may influence your decision to buy first or sell first. In a seller’s market, you might want to buy first, since it might take you longer to buy and your home will likely sell quickly. In a buyer’s market, you might be better off selling first, since that will likely take a bit longer than finding a home to purchase.
However, the market is not the only factor you should consider when buying and selling in Park City’s unique real estate market.
Seasonal Considerations
In Park City, our bifurcated real estate market means different property types peak at different times in the year. For example, if you are selling a resort property, it would be good to know that the resort market hits its peak during tourist season in the winter, when resorts are open. Conversely, if you’re buying and selling in one of Park City’s neighborhoods for full-time residents, it’s helpful to know the peak of the market is in the summer.
Learn more about seasonality and the things that make Park City real estate so unique with these posts next:
- Is it a Good Idea to Buy a Park City Home in the Summer?
- The Ultimate Guide to Park City Vacation Real Estate
- Common Mistakes When Selling a Vacation Property and How to Avoid Them
Pros of Buying First
We often advise clients to buy first if they can afford to hold their current home before buying something new, and they can manage the burden of owning two properties. Buying first gives you more options. You won’t need to watch as your dream home is listed and sold. Truly great properties in Park City don’t stay on the market for long, so if you can act fast and get the home you want, that’s always preferable.
Wondering what to expect when buying a home in Park City? Read our post: How Long Does it Take to Buy a Park City Vacation Home?
Cons of Buying First
Buying first does come with some risk. For example, what if you buy a home and your current property takes a long time to sell? The most obvious “con” of buying a home before selling your existing property is carrying the cost of two homes. And it’s not just the mortgage you need to consider. Utilities, maintenance, and repairs don’t disappear just because you have two properties.
Pros and Cons of Selling First
Depending on the market and your unique goals, you could sell first. With this, you won’t have the stress of carrying the costs of two homes. However, if you sell your home and are unable to find a new property in the time it takes to close on your sale, you might be left high and dry.
For even more advice and buying/selling answers, check out these posts next:
- How to Get Your House Ready to Sell
- How to Prepare For Home Showings as a Buyer
- What to Know About Investing in a Park City Vacation Home
Things to Consider
If you’ve experienced buying a home in other markets across the US, you may be familiar with the concept of a contingent offer. This is when your home offer is contingent on something else happening. In this case, your offer could be contingent on the sale of your current property.
While this is a common contingency elsewhere in the country, they aren’t really common here in Park City. In the majority of cases, you have to choose whether or not you want to take a risk.
The Role of Your Agent
Mitigating risk is something that a great Park City real estate agent can help you do. When buying and selling at the same time, strategy comes into play, and your agent should be able to help you make the best decision based on your unique circumstances. It’s important to have an honest conversation, set expectations, and understand exactly how sellable your house is and what the market looks like when selling it.
Here at Chin Fleming Harris Luxury Resort Real Estate, we have helped countless vacation home owners and permanent Park City residents execute the right strategy to buy and sell with success.
If you’re in the process of buying and selling at the same time, we’re here to help! Get in touch today via the form below or by calling us or emailing us directly.
