Should You Buy or Sell First in the Pasadena Foothills and San Gabriel Valley Market?

When it's time to change your living situation in the Pasadena Foothills or San Gabriel Valley, one major question poses a bit of a puzzle: Should you secure your next home before you’ve sold your current one, or vice versa? Each route has its advantages and drawbacks, and the best course of action varies depending on your unique circumstances. Let's break down the factors you need to consider to make a wise decision for your next move.

Buying First: Weighing the Pros and Cons

Encountering your dream house on the market can incite a strong urge to buy it right away, especially to avoid missing out. However, several important considerations come into play here.

Pros:

• A Guaranteed Next Move: If you buy first, you're eliminating the worry of where you'll live between selling your current property and moving into your new home. This eliminates the hassle of temporary housing solutions.
• No Rush to Relocate: Owning your future residence means you can move at your own pace without the urgency to vacate, providing a less frenetic moving experience.

Cons:

• Financial Pressure: Holding onto two properties means juggling two mortgages, unless you have the financial capability to buy outright, leading to potential financial stress or the need for a bridge loan.
• Quick Sale Anxiety: With financial resources stretched thin between two properties, you might feel compelled to sell your current home swiftly, potentially at a lower price than desired.

Selling First: The Upsides and Downsides

Selling before buying can offer a sense of financial relief but also brings its own set of challenges.

Pros:

• Single Mortgage Simplicity: Selling first frees you from the worry of double mortgage payments or securing extra financing. You'll have a clearer picture of your budget for the next purchase, simplifying the process.
• Enhanced Purchasing Power: With the proceeds from your sale ready, you’re in a better stance to make attractive offers. In competitive markets like Pasadena Foothills and San Gabriel Valley, where inventory can be tight, this can be a significant advantage.

Cons:

• The Interim Housing Dilemma: Selling first without a follow-up home locked down means sorting out temporary living arrangements – be it renting elsewhere, bunking with relatives, or storing your belongings, which can be cumbersome.
• Buying Under Pressure: Once your property sells, the clock starts ticking to find your next home, which might lead to compromising on your preferences just to secure a place.

Making Your Move in Pasadena Foothills and San Gabriel Valley: Buyer or Seller First?

No universal answer fits every scenario, but considering a few key elements can guide your decision:

• Assess the Current Market: In the seller’s markets often seen in Pasadena Foothills and San Gabriel Valley, where demand outstrips supply, selling first may offer an advantage, likely resulting in a swift sale. Conversely, in a buyer’s market, you might face a longer sale process, making buying first more appealing.
• Examine Your Finances: Can you handle two mortgages for an interim period, or would selling first alleviate financial pressure? If funds are tight, the latter might be preferable. Conversely, if your budget allows for a bit of overlap, buying first could afford you more flexibility with timing.
• Consider Your Comfort with Risk: If the thought of financial overlap or a rushed purchase is worrisome, selling first may be wiser. If you're okay with a temporary juggle or prefer not to rush your sale, buying first could suit you better.

For those seeking a middle ground, bridge loans or making a contingent offer on a new home—where the purchase is dependent on selling your current home—might provide solutions. However, it's worth noting that in competitive areas like ours, sellers might be less inclined to accept contingent offers.

Deciding whether to buy or sell first in the Pasadena Foothills or San Gabriel Valley ultimately hinges on your personal circumstances and the prevailing market conditions. By weighing the advantages and disadvantages and considering your financial and emotional readiness for risk, you can choose a path that aligns with your goals, ensuring a smoother transition to your new home.