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Buying first then selling? (NY)

We are in a nice, small house that we love (3 bed, 1.5 bath, 1200 sq ft), but we have a second baby on the way and parents that visit often, so our current house is getting a bit cramped. We're looking to buy a bigger house in the same area because the town has one of the best school districts in the area, is walkable and is close to work.

For the reasons I listed, this is a fairly desirable place to live. Houses priced correctly are gone the day after listing (I've been tracking real estate here for maybe four years).

We thought now would be a good time to buy because interest rates are low and our income has increased over the past year, plus it's easier to move while I'm pregnant than it is with a newborn.

Our realtor wants us to list/sell our house first, then buy a new house with the funds from the home purchase. I don't care for this option because houses in my area typically sell the weekend they're listed, which then puts a countdown clock on us to find something we like during a time of the year when housing inventory is at its lowest.

I've been reading some of the posts here about how to buy and sell simultaneously, and I think the best option would be waiting to find a house we really like, submitting a non-contingent offer and putting 5-10% down (we have that in savings now), listing our house immediately after we go under contract, then recasting the mortgage using the sale proceeds for the remaining 10-15% of the 20% needed to avoid PMI/lower our monthly payment.

Our lender has run a pre-qualification for us already and has said we would have no issue qualifying for a second mortgage while carrying the first mortgage. The cost to recast the mortgage on the new house would be $250.

This plan honestly seems too good to be true, but I'm worried I'm missing something. Worst case scenario is our house doesn't sell right away and we carry two mortgages for a few months. We could swing that if we needed to, but we do plan to price our house competitively. We also plan to get a photographer in here ASAP to get photos ready if we need to list.

Anything else I should be considering here?

submitted by /u/sanslumiere
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source https://www.reddit.com/r/RealEstate/comments/kngxid/buying_first_then_selling_ny/
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