You should never buy a new house before selling your old home ... at least, that’s the conventional wisdom. Because if you buy before you sell, you run the risk of owning two homes at once—and carrying two mortgages!
What if your first home doesn't sell anytime soon? The financial ramifications are too scary to even consider, right?
Not necessarily. For some home buyers, it actually does make more sense to buy your new home before you sell your old one. Here are six times to seriously consider this option, along with tips for handling the challenges you might face along the way.
1. You’re buying in a seller's market
A seller's market refers to times when there are more buyers looking for houses than there are houses available for sale. And this puts buyers at a disadvantage.
2. You want to remodel your new home (or your old one)
If you’re living in a fixer-upper or you have your eye on one, buying before you sell may actually make a whole lot of sense. The reason: This strategy gives you a place to live while renovating the other residence. That way, you and your family don’t have to live in a construction zone!
3. You have kids
Let's just say it's not easy to sell a house that's overrun with children, and all the toys and messes that crop up in their wake. It can even hurt the odds that your home will sell at all.
Getting your home sales-ready, and keeping it that way, may be simpler if you’re already living in your new home (plus, you don’t have to uproot your little ones more than once).
4. You’re downsizing
Downsizing is an especially challenging task. You’re faced with sorting through the contents of your current home, which tends to be a time-consuming and emotional ordeal. Buying a new home before selling gives you time to sort through your belongings and simplify the process.
5. You’ve found a great deal, or your dream home
Some houses are just too good to pass up. If you’ve found an amazing bargain or the home of your dreams, you may want to snap it up! If not, you might regret how playing it safe meant you missed out on this once-in-a-lifetime deal.
Even if you have good reason to buy before you sell, that doesn't mean it'll be easy. For one, would you even qualify in lenders' eyes to carry two mortgages at once? And would you want to? Here's how to navigate these challenges.Ask yourself Can i carry two mortgages?
If you’re thinking about putting your house on the market, To make the most of your new listing, Do a Walk-Through With a real estate professional like Carriene Porter of Precision Realty & Associates, you’re guaranteed to get the expertise and advice you need. Give us a ..
#Selling #UtahRealEstate #Homeownership