Choosing Between Buying or Selling First in South Metro: Insights for Homeowners

When it's time for a change in scenery or an upgrade to your living space in the South Metro area of Minneapolis/St. Paul, you're likely to face the classic homeowner's conundrum: Is it smarter to buy your next home before you sell your current one, or should you sell your current home before you buy? Each path has its benefits and potential pitfalls, and the right decision hinges on your specific situation. Let's break down what you should consider to make an informed choice tailored to your needs.

Buying First in South Metro: What to Expect

Falling in love with a new home in the lush, spacious neighborhoods of South Metro before your current home is off the market is tempting. The idea of securing that perfect spot without the pressure of a ticking clock is appealing, but let's weigh this option carefully.

Pros:

• Seamless Transition: By purchasing your new home first, you eliminate the need for temporary housing solutions. This means you can avoid the inconvenience of storage units or the discomfort of crashing on a relative's couch. You move from your old home directly into your new haven in places like Eagan, Apple Valley, or Burnsville, at your own leisure.
• Flexible Moving Schedule: Owning your new home gives you the luxury to move at a pace that suits you. This flexibility can significantly reduce the stress commonly associated with moving.

Cons:

• Financial Pressure: Juggling two mortgages is a considerable financial undertaking. Not everyone can comfortably afford two mortgages concurrently, and the additional strain might require dipping into savings or taking out a bridge loan.
• Urgent Sale Needed: The financial responsibility for two properties might push you to sell your current home quickly, potentially below your desired price point, given the lively but sometimes unpredictable South Metro real estate market.

Selling First: A Strategic Move?

Alternatively, selling your existing home before buying a new one can provide financial peace of mind, albeit with its own unique challenges.

Pros:

• Eases Financial Burdens: By selling first, you sidestep the challenge of double mortgages. You'll have a clear picture of your budget for your next home, simplifying your buying process in a dynamic market like the South Metro's.
• Amplified Buying Capacity: With the proceeds from your sale, you're in a more empowered position to make compelling offers on your next home—a significant advantage in the competitive neighborhoods of Savage or Prior Lake.

Cons:

• Housing Limbo: Selling first means you may need to find a temporary living arrangement until you secure your next home. This could involve renting, staying with family, or dealing with the logistics and costs of storage for your possessions.
• Rushed Decision Making: The need to find your next home promptly after selling could pressure you into settling for a property that doesn't fully meet your wishlist, especially in a market that moves as quickly as South Metro's.

Making the Decision: What's Best for You?

The choice between buying and selling first isn't one-size-fits-all. It depends on market conditions, your financial flexibility, and personal preference regarding risk and timing. Here’s how to gauge what might work best for you:

• Understanding Market Dynamics: The South Metro area's real estate market can ebb and flow between being a seller's and a buyer's market. A seller’s market, characterized by high demand and fast-moving listings, might favor selling first. Conversely, in a buyer's market, where options exceed demand, it could be advantageous to buy first.
• Examining Your Finances: Your financial situation plays a pivotal role. If managing two mortgages simultaneously stretches your budget too thin, selling before buying is advisable. On the flip side, if you have the means, buying first might offer a smoother transition.
• Assessing Your Risk Tolerance: Consider how comfortable you are with uncertainty. If the idea of juggling two mortgages or having to find a new home on short notice causes significant stress, selling first might be your best bet. If you're more flexible and can handle some overlaps or delays, buying first might suit you better.

Alternatives like bridge loans or making a contingent offer can also help bridge the gap between buying and selling, offering a middle ground that provides some financial and timing flexibility.

The South Metro real estate landscape, with its unique blend of urban and suburban settings, offers a wide variety of opportunities and challenges for homeowners looking to move. By carefully considering current market conditions, your financial situation, and your personal preferences regarding risk and timing, you can make an informed decision that aligns with your goals and leads to a successful home transition. Above all, remember that each option offers different benefits, and the choice ultimately depends on what makes the most sense for your individual situation.