Purchasing your first home was a huge task. Do you recall the exhausting research? The stacks of documentation that need to be reviewed and signed? What about the deadlines? Prepare to go through all of the worry and agony all over again when it comes to buying a house before selling the previous one.
Buying a new house before selling an existing one is one of those real estate subjects that often gets disputed. For anyone without a large income, buying another house before selling your current one is a dangerous venture. It is doable, but it is not advised for most people.
Let’s take a look at what you should do when buying a house before you sell your present one.
Buying A House Before Selling Your Existing Home: Benefits
Even while most purchasers are unable to purchase before selling their current home, there are a few advantages. There’s a reason you explored the plan in the first instance, so it’s worth revisiting what you’d gain from it. You’re probably thinking of purchasing first because you’ve found a property that’s exactly what you’re looking for.
If you have the financial means, you can consider keeping both properties. The previous property can be beneficial for you if you give it upon rent. The rent you receive can go towards the mortgage payments of your new home. This may be particularly beneficial to you if the real estate market is improving and you see the possibility of selling your existing property for a higher profit in the future.
Buying A House Before Selling Gives You Time For Improvements
Another important advantage of purchasing a new house before selling your current one is the option to make the renovations you want timely. Buying a house before selling your existing one gives you ample time to remodel the new one.
Remodeling tasks like kitchens and baths are some of the upgrades that are a lot easier to do when a home is vacant.
Know The Timings: Buying and Selling
The perfect timing in a real estate market for buying and selling properties differs. For example, 2022 is considered a seller’s year. They are earning high profits due to high prices and a shortage of houses. For buyers, the condition may not be that ideal.
In an ideal scenario, you’d sell your current home and utilize the money to help pay for the purchase of your new one. it’s critical to conduct some study about your local real estate market, both where you’ll be buying a house before selling your home.
i- For The Selling Side
Start with knowing how long similar properties (comps) have been on the market. Evaluate your property comparatively with others. Set realistic expectations. Many sellers make the mistake of starting too high in the market. They have to lower their prices numerous times before getting an offer. A real estate professional can assist you with comps and a price strategy.
ii- For The Buying Side
When it comes to buying a home, do your homework on the neighborhoods you’re interested in. Consider your budget including the proceeds you’ll get after selling the existing home. Think about the mortgage plans you’ll be needing. Be ready to make a decision once your existing home is under contract.
Bridge Loan Is An Option
Bridge loans combine your existing and new home payments, allowing you to move from one location to another. However, they require a lot of finance and a good credit score to qualify. Bridge loans were once common, but they are now rarely taken
You would receive another mortgage in today’s mortgage market. You would be qualified by the lender to carry both your current and new mortgages. For individuals who qualify for two mortgages, this is a normal route to take.
Regentology Can Take Care of Your Buying and Selling Hassle
Whether you plan on buying or selling first, Regentology will always be available for you. Our team of professionals works round the clock to connect you with the best realtors in your region. All your buying and selling needs will be taken care of. Fill out the form today to get a consultation.