How to Determine the Best Route When Selling and Buying a House
There are some key things to consider when buying and selling a home.
Buying or selling a house can be a daunting task, and deciding which comes first can be an even bigger challenge. With today's real estate market having low inventory and high demand, homeowners who need to complete both transactions in a short period of time must consider several factors before making a move. We will explore three key questions to ask yourself before selling or buying a home.
The first question to consider is whether you can afford two mortgages at once. While most people prefer to buy first and sell later on, qualifying for two mortgages can be difficult and add a lot of stress to your situation. If you can carry both payments for a few months, you'll have plenty of time to find a new home while also preparing your current house for top dollar. However, this may not always be the case, so it's essential to consider other variables before making a decision.
The second question to ask yourself is what type of home you're buying. If you have a specific neighborhood or school district in mind, you may not be able to afford to sell your home first, as it could be contingent on a quick sale. In this case, you may need to put a contingent offer forward or consider a bridge loan or taking home equity out to purchase that property. If you don't have a specific wish list for your next house, selling first might make more sense for a multitude of reasons, including bringing money back into the equation and having the freedom to move at your own pace.
"There's more than one way to sell before you buy."
Finally, the third question to ask yourself is whether you want to move twice. Most people want to move from one house to the next without having to find temporary housing while searching for their next home. However, if you need the money from your home sale to fund your subsequent purchase and haven't identified a property yet, you may have to consider this option. Rent is on the rise due to inflation, and negotiating a rent-back agreement may be necessary. This option allows the buyer to either purchase back or rent back your property that they're purchasing, or on the purchase side, you have the ability to ask the seller to rent the property while you're buying it.
There's more than one way to sell before you buy or vice versa, and having the right professional in your corner can make all the difference. If you're unsure about which route to take, it's essential to ask yourself these key questions before making any decisions. At the end of the day, understanding your situation and the next steps will help you make the best decision for your unique circumstances.
Remember, if you have any questions about this topic or real estate in general, please feel free to reach out to me by phone or email. I would be happy to help you with all of your real estate needs.