When it comes to buying and selling your home, there is no single best way to get the deal done. Some homeowners prefer the safety net of selling their home before they buy their next one.
Others are willing to pay for two homes until they can sell their old one for the right price. There are advantages and disadvantages to both approaches, and you’ll want to get some advice before you decide.
One thing to consider before you buy or sell is the current real estate market. If it’s a buyer’s market, then you may need to be patient while your home sells; it could take some time before you sell your home. That means you may be faced with a dilemma if you find your dream home or a fantastic real estate deal.
Advantages of Selling First and Buying Later
For homeowners who need to access the equity in their current home to buy their next home, selling first makes sense. It can also help you to get the best deal. If you buy a new home before you sell your current one, you may feel more pressure to sell your house quickly. If you wait to buy until after you’ve sold your existing home, you won’t feel that rush.
Another advantage of this approach is that there will be less financial stress on you. If you opt to buy a new home first, you may be in a position where you are paying two mortgages for some time. That can be a financial burden most people can’t bear. You should seek mortgage advice before you decide to take on a second mortgage.
One major disadvantage to selling your home before you buy your next one — or before your new home is ready to move into — is that you’ll need to make a plan for temporary housing. That may mean renting for a couple of months, or staying with friends or relatives until your new home is ready for you.
Advantages of Buying First and Selling Later
For some homeowners, buying their next home before they sell their current one is the best option; this can save a lot of time, effort and money. You won’t need to worry about temporary housing while you are between homes.
If you have found your dream home, you may miss out on the opportunity if you wait until you sell your home. Buying a home has a strong emotional impact, and once you fall in love with a property, you won’t want to miss out on owning it.
However, buying a home before you sell your current one puts you in a position where you may be paying for both properties for some time. If you are in a seller’s market, this approach could work in your favour. If you are thinking of using this approach for your next real estate purchase, it’s a good idea to get some sound mortgage advice beforehand.
If you are interested in learning more about buying or selling your home, call Northwood Mortgage™ at 888-492-3690 or contact us here.