If you want to sell your current home and buy another one, it is usually best to sell the current property first. However, there are also cases where it is perfectly okay to lead with the purchase; here are a few examples of such cases:
You Are Not Relying On the Sales Proceeds
One of the most common reasons for selling before buying is that you get to use the money from the sale of your current house to buy the next home. This makes sense since buying a house is not just about putting down the down payment and servicing the mortgage. You need money for closing costs and earnest money deposit, among other things. Most people don't have that kind of money lying around
If that is your situation, then it would be dangerous to start the purchase process without knowing how much you have received from the sale. However, if that isn't your situation, and you are not relying on the sales proceeds for the next purchase, then there is nothing stopping you from starting the purchase process right away.
You Have Landed Your Dream Home
Most people don't get to live in their dream houses. Sure, you may be living in a suitable or good or luxurious home, but chances are high that it isn't the one you grew up dreaming about. What would you do if you were planning to sell your current home and buy another one when you are suddenly confronted by your dream house? Maybe it is a beach house (in your favorite beach) with the exact number of bedrooms and layout you have always dreamed about, and even the color is perfect! Delaying purchase in such a case may be disastrous for you; who knows when or if you may land a similar house in the future?
You Have Landed the Deal of the Century
As explained above, buying a home isn't cheap for most people. Once in a while, however, the deal of the century comes along – the kind of perfect deal that you can miss if you blink. Maybe the owner is moving overseas and is disposing of the house for next to nothing. Or maybe the owner has got a promotion in a different state and is more interested in selling the house fast than selling it at the right profit. Whatever the owner's reason for selling their house at a rock-bottom price, you don't want to miss such a huge opportunity by insisting on selling the first house first.
You are in a Seller's Market
Finding a house, and a suitable one at that, in a seller's market where the offers are few and buyers are abundant, is not easy. That is the kind of climate that gives rise to fierce bidding wars and ludicrous prices of tiny houses. In such a market, if you have landed a good house, you can go ahead with the purchase even before selling your current home. After all, it won't take you long to sell the house.
For more information, contact a company like Spears & Co Real Estate.Share