Should you sell your existing home before you buy a new one?
Sometimes the toughest part of buying a new house is figuring out what to do with your existing one. Should you put in on the market before or after you’ve closed the deal on the new home?
As you’re searching for a new home, you might be wondering if now is the right time to list your current house on the market. Or, should you hold onto it until you’ve moved in at your new address.
When it comes to the decision of whether you should sell your house now or put it up for sale, there are no set rules and it ultimately depends on you. To help make the decision a little easier, here are some of the things to consider.
Deposit
By the time you sell your house, it’s market value would have increased, and you can use the equity to put down a deposit on your next home.
Simultaneous bonds
When buying first, you’ll be stuck with paying two mortgages. That’s to say if the bank agrees to finance your second home before you’ve sold your first.
No contingency
A contingency can hurt your chances of closing a deal on your dream home. If you can sell your home now, you won’t have to deal with the rule that states you must get rid of your old property before you can buy the new home.
Renovations
If you’re buying a fixer-upper, you can remain in your current home and complete renovations before you move into new residence.
Short term rentals
Selling your home first means you’ll have to find a temporary place to live while you close the deal. In the end, you’ll have the endure the unpleasant experience of moving your belongings twice.
The bottom line is that there are a number of pros and cons that might influence your decision. Carefully considering the financial options available, the market conditions, and whether you’re willing to take risks, will help you decide with confidence which move is right for you.
