Buy first or sell first? The ultimate dilemma for homebuyers!

You’ve found your dream home. The location is perfect, the garden is a paradise… But your current home isn’t on the market yet. Should you sell your old home first, or buy that dream home right away? It’s a dilemma many homebuyers face: buy first or sell first? That’s the question. The financial and practical aspects play a role here. We’ve listed the pros and cons for you. 

Sell first

Many people choose to sell their current home before buying a new one. Why? It gives you a clear picture of your financial situation. No surprises, no stress. You know exactly what your budget is for your new home. Better safe than sorry, right? 

Benefits

• You know exactly how much you'll get for your home. This means you have a clear picture of your budget for your new home. 

• You have greater financial security. 

• You'll have more bargaining power when making a purchase. 

Disadvantages

• Your search needs to move along (faster), because the buyers of your current home naturally want to move in as well.

• You often have to look for a move-in-ready home because you don't have time to wait until your new place is completely finished. Or you're looking for temporary housing. 

• Maybe you're missing your dream home.

💡 Tip: occupancy fee

If your current home is sold, you’ll still have about four months between the signing of the preliminary agreement and the execution of the final deed to look for a new place to live. 

Haven't found a new place yet? No worries! In some cases, you can temporarily continue living in your current home while you look for a new one, provided you reach an agreement with the buyer. This is usually discussed and agreed upon when signing the preliminary sales agreement, as it is an important condition of the sale. A clear agreement makes for a happy relationship! In such cases, an occupancy fee is usually agreed upon between both parties to ensure everything proceeds clearly and fairly.

Buy first

On the other hand, if you buy first, you have the luxury of time. You can take your time looking for the perfect home without the pressure of a sale deadline. 

Benefits

• Time to find your dream home

• No stress from a temporary move

• You don't have to worry that someone else will snap up your dream home while you're waiting for a buyer for your current home.

• You have complete freedom to decide on your new home. Can’t move in right away? No problem. You have plenty of time and can stay in your current home for now.

• As a buyer, you’ll work out the timing with the sellers of your new home. You’ll discuss among yourselves how much time you’ll need to sell your current home.

Disadvantages

• Need to sell your current home faster?

Have you already found your dream home, but still need to sell your current one? If so, timing is crucial. If you have sufficient funds, you’ll have some breathing room and can handle the sale at your own pace. If you don’t have that luxury, time pressure can cause stress. In that case, a well-thought-out sales strategy—with the right real estate agent—is essential to avoid financial headaches.

• You run the risk that your current home won't sell in time, leaving you facing financial difficulties.

💡 Tip: bridge loan

But how do you finance this? This is where a bridge loan comes in. It’s a temporary loan that bridges the gap between the purchase of your new home and the sale of your current home. The advantage is that you don’t have to repay the loan until the end of the term. It’s important to discuss with your bank what amount and term are feasible for your personal situation.

It’s also a good idea to find out what your options are for paying off the loan early. You never know—you might assume your current home will be difficult to sell, so you take out a 24-month loan, only to find that your current home has suddenly sold and been paid off after just 12 months. 

So, what are you going to do? Buy first or sell first? Not sure which order is best? It’s an exciting decision with many factors to consider. Make a list, talk to a real estate agent, and follow your instincts. And remember: whichever path you choose, at the end of the day, you’ll be living in your new home. And that’s priceless!