When make sense to selling your house and buying another one without using all of the money from the sale

Selling your house and buying another one without using all of the money from the sale can be a wise decision in several situations:

Financial Flexibility: When you want to allocate funds for other investments or savings, using only a portion of the sale proceeds for your new home purchase can provide greater financial flexibility.
Downsizing: If you're moving to a smaller or less expensive property, you may not need to use all the proceeds from your current home's sale.
Market Conditions: In a buyer's market, selling first and not using all the proceeds can give you a stronger negotiating position when purchasing your next home.
Avoiding Financial Strain: By not using all the money from the sale, you can avoid the stress of carrying two mortgages simultaneously if there's a gap between selling and buying.
Building a Financial Cushion: Keeping some of the sale proceeds as a reserve can help cover unexpected expenses or provide a safety net for future needs.

However, it's important to consider potential drawbacks:

Temporary Housing Needs: You may need to find interim housing if you haven't secured a new home, which can be inconvenient and costly.
Market Timing Risks: If housing prices rise rapidly, you might face challenges finding a suitable new home within your reduced budget.
Missed Investment Opportunities: Not reinvesting all proceeds into real estate could mean missing out on potential property value appreciation.

Ultimately, the decision should be based on your financial goals, market conditions, and personal circumstances. Consulting with a financial advisor or real estate professional can help you make the best choice for your situation.

Citations: [1] https://www.zoocasa.com/blog/5-pros-and-cons-to-selling/ [2] http://www.kamloopspropertyforsale.com/blog/should-you-sell-your-home-or-buy-a-new-home-first.html [3] https://leavethekey.com/blog/pros-cons-selling-house-you-just-bought/ [4] https://www.andersengrouprealty.com/selling-home-first/ [5] https://www.justinhavre.com/blog/pros-cons-selling-house-for-cash.html [6] https://bridgewellgroup.ca/buying-house-before-selling-your-own/ [7] https://www.broadviewhomeswpg.com/blog/pros-cons-sellers-market-a3 [8] https://www.linkedin.com/pulse/pros-cons-buying-home-before-selling-your-old-one-natasha-tomlinson