Should You Sell Your Home Before Buying Another?

The common way to buy a new home is to sell the existing home and use the income gained from selling the home to purchase your new home or at least make a down payment. However, if you are in a seller's market, you might find it difficult to purchase a new home and may find yourself in limbo as you are waiting to buy a new home and have it ready to move in. 

Determining Where to Live

If you are forced to move out of your existing home while waiting to purchase a new home, you may need a short-term place to stay. This could include a short-term lease at an apartment, a stay at an extended stay hotel, or you may be able to live with friends and family members. 

Buying a Home Before Selling Your Existing Home

If you do not want to go through the hassle of finding a place to stay, you may be best off purchasing a home first and then selling your existing home. The two main concerns are your debt-to-income ratio and your ability to come up with a down payment. Obtaining a second mortgage might be difficult if you will be taking on too much debt for your income.

How to Find a Great Home

If you do not want the hassle of buying before you sell your home, you'll need a great real estate agent who can help you find houses for sale. A real estate agent will be able to quickly determine if a house is overpriced or underpriced so you can make sure that you find a great deal.

Another advantage of real estate agents is that they can assist you in finding a home. While there are many homes that are advertised on websites, there are also some homeowners who do not want it known that they are selling their homes. To purchase these homes, you'll need help from a real estate agent. They will also be aware of homes that have unique features you may be looking for.

Because you will want to move into your home as quickly as possible after selling your existing home, a real estate agent can speed up the process by handling much of the paperwork. They will make sure that all the details are ironed out such as the need for specific repairs to be done to your home. 

For more information on your real estate options, contact a real estate agent.

Share