The process of selling a home is a daunting experience, mostly for the first timers and a home you already own. The idea of planning to sell a house then buy or vice versa is a tough decision to make. And if you want to sell or buy a home, repcalgaryhomes.ca can help you maneuver the process on your behalf.
Therefore, if you opt to sell a home and purchase another one, you need to consider several aspects. Trying to determine the pros and cons of selling your home or buying to sell it later can help you to make a decision you’ll never regret.
Benefits of Selling Your Home before Buying a New One
Although selling your home before buying may seem like a perfect solution, it’s not the most convenient option. It is only beneficial if your idea is to have access to your current home equity to purchase a new home.
When you view it from the angle of a real estate market standpoint, the idea of selling before buying is more practical for those selling in a buyers’ market. So, you realize your home may take long before selling, and may be you are unable or don’t plan to purchase two homes for a long period of time. For example its important to understand the Homes for sale in Maricopa AZ or other areas you maybe looking at selling.
Avoid a Rushed Home Sale
When you sell your home first, it allows you to enjoy the luxury of time. You have the liberty to wait until you get an offer that resonates with your needs. There is no hurried decision to purchase a new house, but you have enough time to weigh options that favor you.
You Make a Stronger Purchase Offer
After selling your first home, you may have a negotiating power from the sale of your recent home. This gives you a chance to make a stronger purchase offer on your dream home that you like.
Understand your Sale Profit
When you sell your current house before making another purchase, you have cash with you from your sale to purchase your next home. It’s not easy to estimate your profit before closing as sellers habitually make concessions. Therefore, when you understand your sale profit, it is easier to shop for your new home within your budget.
Pay one mortgage only
It can strain you financially to pay the mortgage of your two homes. In fact, when you have an existing mortgage, you may find it hard to qualify for another mortgage when your monthly repayment plan factors into your debt-to-income ratio. So, it makes sense to sell your home first and then buy another home to help you deal with only one mortgage. It enables you to overcome financial pressure and enjoy peace of mind.
Stage your Own Home
It can be costly-staging an empty house. The majority of homeowners use their house furniture to attract buyers when they are selling their home. For homeowners who prefer to purchase a home first and occupy it may decide to rent the furniture to cover the empty space.
Tips for Selling a Home before Buying
Here are important tips to help you sell the house before buying another reliable option.
- You can rent the house while still empty to reduce the burden of servicing two mortgages at once.
- Consult with real estate experts to assist you with the home purchasing process after selling your first home.
- Spend time searching for the price of renting a house for a short period to get a deal that favors you while looking for your dream home to buy.
- Look for affordable facilities to store your furniture and other house items while waiting to purchase another home.
Drawbacks of Selling Your Home before Buying a New One
The reasons listed above are valid, but here are the drawbacks that you may experience after selling your home before buying a new one.
Living in a temporary housing
When selling the house, these are factors people overlook, which may end up paying more money on rent. Some rentals may ask you to part with a large deposit and most likely fail to recover your money the day you decide to move out. Also, if you choose to rent a fully furnished house, it can be more expensive.
Moving twice is stressful
While moving to a new home has lots of benefits, especially a better home than your previous one, but the process can easily strain you. After selling your house, you’ll have to move your furniture to a facility and move again to the new house that you purchase next. The movement process is tiresome and time-consuming and adds an extra burden to move twice.
Market Risk
Your calculation to sell your current home and purchase another home may fail to flow as you planned. The new home price may shoot and end up paying extra money than you made from your old home.
Rush the Purchasing Process
Once you successfully sell your first home, you may rush the buying process and end up with the wrong home. After selling their home, most homeowners rush the process when rental setup fails to work for them. It is sad when selling your beautiful home to end up with a worse house you never anticipated.
Benefits of Buying a Home before Selling Your Existing Home
Some homeowners prefer to buy a home before selling. Let’s see how that can benefit you.
No Rush to Purchase
Buying a house first allows buyers to spend more time searching for their best home. Homebuyers seeking to find a home to live for long; this is the best option to wait until they get a better deal.
You Relocate only Once
You do not incur extra cost to rent your furniture facility; instead, you move to a new home from your old house once with personal items.
Move at Your Leisure
After you sell your second home, you have an opportunity to plan how to move furniture out of your home. The process is easier and less stressful. You save on costs without the need to hire a large moving company.
The downside of buying a New Home before Selling Your Existing One
Not everyone can fit the idea of buying a home first. You may experience some drawbacks when purchasing a home first because it will require you to maintain them together.
Purchasing First Rushes the Home sale
After purchasing a home, you may be tempted to rush the selling process of your old house. Rushed deals may end up in a loss since many homeowners agree to accept the first offer.
Mortgage Burden
It is a struggle for many homeowners to repay two mortgages at once. Due to financial constraints, homeowners may struggle to finance the repairs, creating other risks. When the first house takes time without attracting buyers, the homeowner may lose more by repaying two mortgages simultaneously.