If you’re thinking about buying a new home, then it’s natural to wonder if you should sell your current house first. Maybe you’re looking to move closer to work, or your family is growing and your current house isn’t enough for everyone. You may even be in a hurry to get rid of your old home so you can move on to the next stage of life.
While selling your current home before buying your next one does have some advantages, it also has some drawbacks that you should know about before deciding to go with this option. The main reason you shouldn’t sell your house before buying a new one is that this option can leave you on the hook for two mortgages at once. This isn’t ideal if you need to pay for two homes or are looking to buy quickly in a competitive market.
Besides, it can be hard to qualify for a loan in a buyer’s market and you might have a tough time getting approved. Adding to your stress, you might have to find a short-term rental to live in while you search for your new place. Also read https://www.webuyhousesfastntx.com/
Another drawback to this option is that you’ll likely have to pay more for your new place than you would if you waited to sell your old one. You won’t have as much cash on hand for your down payment and you might have to deal with a higher interest rate.
To solve this problem, you can consider a rent-back clause when you sell your house before buying your next one. This lets you sell your house to a buyer who will lease it back to you for a certain period of time, usually about 60 to 90 days. This can give you a little more time to shop for your new home and relieve some of the pressure of finding a temporary place to live.
You can also try to find a seller willing to include a sales contingency in their sale, which states that your offer is contingent on the sale of your current home. This might be difficult to negotiate, but it can help reduce your stress and get you into a better place when it comes to finding the right home for you.
In addition, a lease-back can be a good way to get a lower price for your home and avoid paying for short-term rentals while you’re searching for a new one. It works best in a seller’s market, so it’s worth trying to get this feature added to your sale before you close on the purchase of your new home.
If you do choose to sell your home before buying a new one, make sure you do some research and set the right asking price. You’ll need to compare your asking price against the sales prices of similar homes on the market to determine a fair offering price. Asking too low for your home can be a big turnoff, while overpricing it will only deter potential buyers from seeing it.