West Michigan Lakeshore Homeowners: Buy or Sell First?

For those living on the West Michigan Lakeshore and contemplating a new chapter in their homeownership journey, the question of whether to buy a new house or sell your current property first is a significant decision. Each path has its set of advantages and disadvantages, shaped deeply by our unique local market conditions and your financial circumstances. Let's explore these options to help you make a well-informed choice.

Buying First: A Lakeshore Decision Guide

Encountering a property that captures your heart before your current residence is off the market can be tempting. The allure of the perfect lakeside view or that ideally-located community in Holland or Grand Haven might push you towards buying first. Let's consider the ramifications:

• Immediate Transition: By securing your next house early, you eliminate the gap between selling and buying, dodging the need for interim solutions like storage or temporary accommodation.
• Leisurely Move: Owning your new home allows you to move at your own pace, reducing the stress often associated with tight moving schedules.

However, the financial implications of juggling two mortgages simultaneously cannot be ignored. This might necessitate dipping into savings or obtaining a bridge loan. The anxiety of needing to sell your old home swiftly might also compel you to accept a less-than-ideal offer.

Selling Before Buying: A Strategic Move?

Selling your current home before buying a new one can provide financial clarity and freedom but comes with its own share of challenges.

• No Overlapping Mortgages: By selling first, you sidestep the financial burden of two mortgages, enabling a clearer budget for your next purchase.
• Empowered Buying Position: With funds from your sale readily available, you're in a stronger position to make competitive offers.

The main drawback? Figuring out interim living arrangements. Whether it's renting or staying with relatives, the solution might not be ideal. Moreover, the pressure to find and secure your next home quickly might lead to a compromise on your true desires for the sake of expedience.

Deciding in the West Michigan Lakeshore Market

Given the allure of lakefront properties and the tight-knit communities along the lakeshore, the decision to buy or sell first is heavily influenced by local market dynamics and your individual circumstances.

• Understanding Market Trends: In our seller's market, properties in coveted areas like Muskegon, Saugatuck, or Spring Lake often sell swiftly, possibly tilting the balance in favor of selling first. Conversely, if you're eyeing a specific niche or high-demand area, securing your dream home before listing might be warranted.
• Financial Preparedness: Evaluate your financial resilience to sustain double mortgages or secure bridging finance. If the prospect seems daunting, prioritizing the sale of your current home might be more prudent.
• Risk Appetite: Consider how comfortable you are with uncertain timelines and financial overlaps. If such scenarios seem stressful, it may be wise to sell before taking on the pursuit of a new home.

Bridge Loans and Contingency Offers: Balancing Acts

If the direct buy-first or sell-first approaches seem too extreme for your taste, there are alternatives. Bridge loans can cushion the financial gap, while making a contingent offer provides a safety net, stipulating that your purchase hinges on selling your current home. These strategies might offer a more balanced pathway, though it's noteworthy that not all sellers on the West Michigan Lakeshore are amenable to contingent offers, given the competitive nature of our market.

In conclusion, whether you decide to buy a new home on the West Michigan Lakeshore or sell your current one first, your choice should align with both the prevailing market conditions and your personal financial comfort. By weighing the advantages and considerations while keeping an eye on the market's pulse, you'll be positioned to make a strategic move that leads to your next home adventure.