Buying and Selling

Well, it is important you can afford both apartments' mortgage, maintenance, RE taxes, insurance, etc. and meet the Debt To Income Ratio set by the particular Lender if you plan to buy an apt. before selling the apt you already own. It sounds like you cannot go ahead with the second apt. without pulling money out from the apt. owned at this time.

In this market, you have a disadvantage, especially in the fierce bidding wars in the prime areas, if you have to make your offer contingent on the sale of your own apt. Don't forget, we all have been hearing about all cash buyers in certain markets. A seller will likely not choose you over another buyer if you have to have a contingency to sell your apt. first.

So you have both the hurdles of the Lender's stringent requirements and the Seller's probable choice of a more "straightforward" buyer with a less involved and time-intensive process to contend with.

I would say you should definitely sell your apt. first before getting really serious about a particular apt.

I had purchased my condo before selling my LI house and I had quite tough hurdles to jump with the Lender, primarily because of my DTI ratio. I was buying in a different market than today's. Otherwise I would not have had my offer accepted by the condo Sponsor.

By the way, I did not have to pull out equity from my LI house in order to qualify for my Williamsburg condo mortgage, so I think your situation is particularly improbable during this current RE market. Actually, I was speaking to a few RE agents about getting a larger apt. in less "hot" areas of NYC than Williamsburg but the realtors are all recommending selling the condo I own first before I get serious in my search if I have to pull proceeds from the W'burg condo to go ahead with the new purchase. As likely as it is that my W'burg condo will sell quickly in the red hot W'burg RE market.