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The New Jersey Homeowner's Guide: Buy or Sell First?

Diane Goodwin
Oct 21 1 minutes read

Stepping into the real estate market with plans to change your living situation brings a big question to the forefront, especially in New Jersey's dynamic real estate environment: Should you secure your next home before you've sold your current one? The decision isn't always clear-cut. Each route has its benefits and drawbacks, influenced heavily by your personal circumstances and the market climate. Let’s break down what you need to consider in the Garden State to help you decide with confidence.

Buying Before Selling: Weighing Your Options in New Jersey

Coming across your ideal home in New Jersey before you’ve managed to sell your existing property can be tempting. With unique homes ranging from shore houses in Cape May to historic colonials in Morristown, who wants to miss out on the perfect spot? Yet, caution and consideration are key.

Pros:

  • No Gap Homelessness: By buying first, the stress of where you'll temporarily live between selling your old home and moving into your new one vanishes. New Jersey's real estate market, with its varied inventory from the Highlands to the Pine Barrens, offers many choices for your next chapter without the need for interim measures.
  • Leisurely Move: Owning your new New Jersey home means you can transition at your own pace. You have the luxury of time to move and can enjoy discovering your new neighborhood, be it the bustling streets of Hoboken or the peaceful trails in the Ramapo Mountains.

Cons:

  • Financial Burden: Handling two mortgages simultaneously is no small financial feat. It’s a scenario fraught with risks, possibly necessitating dipping into savings or juggling loans, especially with New Jersey's premium property prices.
  • Sell-Under-Pressure: The financial stretch of covering two properties might compel you to sell your current home faster, potentially for less than its worth, given the unpredictable nature of the market from Jersey City to Atlantic City.

Selling First: The Strategic Approach in New Jersey

Conversely, opting to sell your home before buying a new one can provide a sense of financial security, though it’s not without its challenges, particularly in varied markets like New Jersey's.

Pros:

  • No Dual Mortgages: Selling your property first frees you from the worry of double mortgage payments. You'll have a clearer picture of your budget for your next purchase, an advantage in both the competitive and quieter pockets of New Jersey’s real estate market.
  • More Buyer Leverage: With the proceeds from your sale already in the bank, you’re in a stronger position to make attractive offers. This is particularly advantageous in sought-after New Jersey locales, where competition can be fierce.

Cons:

  • Interim Housing Woes: Finding where to live after selling your home can be a hassle. Whether it’s renting a spot along the Jersey Shore or crashing with family, it’s an interim step that can add stress to your transition.
  • Rushed to Purchase: The pressure to quickly secure a new home post-sale can lead to hasty decisions. In a state as diverse as New Jersey, settling too quickly might mean missing out on exploring all your options, from the urban feel of Newark to the suburban peace of Cherry Hill.

Making Your Move in New Jersey: What’s Best?

There’s no blanket answer, but considering New Jersey’s real estate landscape, here are a few crucial considerations:

1. Current Market Climate: In a seller’s market, common in many New Jersey areas, selling first might be advantageous as properties tend to move quickly. In a buyer’s market, where options exceed demand, buying first might be more feasible.

2. Your Financial Health: Can you afford two mortgages if necessary? If not, the financial security of selling first may be more appealing. For those who can manage the fiscal stretch, buying first offers more flexibility in timing.

3. Risk Comfort: How much uncertainty can you stomach? If the idea of double mortgages or rushing to find a new home makes you uneasy, selling first might be the way to go. If you're more flexible, buying first could grant you the time to find the perfect New Jersey home.

Exploring Alternatives: Bridge Loans and Contingency Offers

If neither option seems just right, New Jersey residents might consider a bridge loan to span the financial gap between buying and selling. Or, a contingency offer, dependent on selling your current home, could safeguard you from owning two homes at once. However, it's important to remember not all sellers in New Jersey's competitive markets will entertain contingent offers.

Deciding whether to buy or sell first in New Jersey is a personal decision influenced by market conditions, your financial stability, and your tolerance for risk. By weighing these factors carefully, you'll be well-positioned to make a choice that aligns with your needs and leads to a successful transition to your next New Jersey home.

Thinking about selling your home?

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