I would like to sell the home I presently own and purchase another home in a different town for approximately the same price.  However, I am concerned about the risks involved.  If I sell my home first, I will have to locate another home quickly and I may not have time to find one in a short period of time.  If I buy a new home first, then I risk owning two homes.  If I cannot sell my present home in this depressed market, what is the best way to handle the situation?

 In a normal market, it is generally better to find the home that you wish to own first and put in an offer and have it accepted before you sell your home.  Purchasing a property has many intangibles such as the school district it might be located in if you have children, its proximity to public transportation, whether or not it is on a busy street or a quiet street, the size of the yard, etc. etc.  Those issues will generally drive a decision in order to purchase a property.

On the other hand, selling a property is simply a question of obtaining the money you will need to buy the next property.  As you point out, however, in this market you cannot assume that you will be able to sell your property and get the price that you need in order to buy the next property.   The only consoling factor is that real estate value is like being on an elevator.  When your value goes up, the next house you want to buy will go up and when your value goes down, the next house you want to buy will also have a depressed price.

If I were you, I think I would sell my property first before I looked around for another property.  In a worse case basis you could sell your property and rent until you find the house of your dreams and then buy it. Interest rates are low and the prices of homes, although not cheap, are certainly far less than they were at anytime since 2005.

If you have questions about this or any other real estate matter, please contact Tom Bennett at (617) 531-6574 or tvb@barronstad.com.