It’s the age-old decision of whether to sell your existing home or purchase your next home first. If you sell to quickly, where will you live before you find a new home? If you don’t sell your current home soon enough, how will you afford to make two mortgage payments?
Although there is no one-size-fits-all answer to this dilemma, there are a few things to consider when making your decision whether to buy or sell first:
· If you must use the proceeds from the sale of your first home to qualify for a home loan for a second home, it only makes sense that you must sell before buying.
· If you are relocating due to a job, it is important to sell your home first before moving so you won’t be faced with the task of selling a home from across the state or across the country.
· If you have enough money saved to handle two mortgage payments, you will likely have more flexibility regarding selling first or buying first. You can use this money to either pay on two mortgages or use it to rent a home or apartment while searching for your next home.
· If you sell your home first and you don’t want to move right away, it may be possible to negotiate a deal with the new buyers. Many sellers may be able to negotiate an extended closing or they may be able to close on the home and then rent back to the buyers. Both of these methods may allow you to buy more time in your home before you must move.
· For the vast majority of sellers, it pays to sell first as to remove the stress of paying on two mortgages on Phyllis Frankel Realty Group homes.
· It may pay to consider eliminating a contingent offer as a seller, as you may end up selling your home for less than you would like. It may actually make more sense to find another place to live until you find a new home.
· If you sell your home before buying another home, make sure you are preapproved and that you have the cash needed available and ready to go so you can make the move as soon as you find a home to buy. Being prepared will save a considerable amount of time when purchasing another home.