There are certainly several things to consider when buying and selling a house at the same time. The process of buying a house can be difficult and stressful. Tons of research is required in terms of the location you want to live in as well as the local real estate market. Then you’ll need to go house hunting in order to find properties that are for sale, not to mention find houses that you actually like. It can be an overwhelming process.
The same can be said about selling the house you’re currently living in. You’ll need to make repairs, invest in upgrades to help boost its value, stage your home, hold open houses and more. Like buying a home, selling a home can prove to be quite a challenge. With this in mind, you’re probably wondering how the heck you’re going to manage to do both. Do you sell your current home first or should you focus on buying a home first? The thing is, there’s no right answer. It all depends on your particular situation. Let’s go over some of the things that you need to consider before choosing one or the other.
Buying a new house before selling your old house
One of the main reasons that homebuyers choose to buy a new house before selling their current home is because they don’t want to end up selling their current property and then finding themselves without a roof over their head. Inventory in the real estate market is somewhat low at the moment, and there is more competition amongst buyers due to the fact that mortgage rates are still favorable. This makes it more difficult to find a house that you like without competing with another buyer — which would drive up the price. Once you sell your house, you could end up waiting months, even years before you find a new house to buy. You would end up having to put the majority of your possessions in storage while living in an apartment. You won’t have to worry about this if you focus on buying a house first. This way, you can move in immediately and then focus on selling your old house – and if it doesn’t sell, then you can always just rent it out instead so that you’re at least getting something out of it.
Selling your old house before buying a new house
While buying a new house before selling your old house may seem less risky, you may not be able to afford doing so. What happens if you find the house of your dreams, take out a mortgage on it and then find that you are having trouble selling your old house? You’re going to end up having to pay mortgages on two separate properties as well as all the costs associated with owning two homes (property taxes, homeowners insurance, repairs, regular home maintenance, etc.). Sure, you could rent the old house out, but this may not provide you with enough secondary income to cover all of those costs, and you’ll have to deal with the responsibility of maintaining that old house. If you don’t have the means to own two homes at the same time, then you should strongly consider selling your old house first before you buy a new house. Yes, you may end up having to put your things in storage and rent an apartment until you find a new house to buy. But this is preferable (financially speaking) to having to deal with the costs of owning two homes.
As you can see, there are pros and cons to both buying before selling and selling before buying. The best option for you depends a great deal on your financial situation, so make sure that you know what you can afford to do before you make a choice.
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