Should I Buy a House Before Selling My Current Home?

Published on July 24th, 2017

In many of life’s instances, it seems to always be better to do something ahead of time before letting go of something else. For example, you may begin your job search while you’re still employed. It may be an effective approach when it comes to your career, but it’s not always the best scenario when it comes to buying and selling your home.

Knowing that your previous home is sold and the money is yours can provide comfort when moving onto your next purchase. This step ensures that you have a budget to work with when purchasing your next home and getting a mortgage.

But making it happen in the right order isn’t always that easy.

Buying a house before you’ve sold your current one could saddle your budget with two mortgages and double bills that put your financial status in jeopardy. Before you make an offer on a house, do the math to see if you could afford this worst case scenario – and any other emergencies that crop up.

On the flip side, if you sell your home before you find the next one, you may be forced to rent a space until you find your next home.

So, what’s the trick? Start out with research. Use resources, like Zillow local pages or your real estate agent, to learn average sales prices in your area and the average time it takes for a house like yours to sell. Also figure out how best to update, stage and present your house for an optimal listing.

Once you optimize your house listing and get a strong sense for how long you can expect your sale to take, time your next-house hunt accordingly. Even if you’re looking in a competitive market, knowing your selling timeline will give you a sense for when your search should get serious.

Finally, work with your agent to create transitional timelines that make sense for you and your potential buyers. If you don’t want to look for your next house until you’re 100% certain your current one has sold, talk to your agent about adding a transitional period to the purchase agreement. But be sure not to make the gap too long – after all, the buyers have a timeline, too.
 

In the end, balance across all elements of selling and buying your house is key.

Each of these tips should provide a little insight on what may be best for you and your family. Have any questions about what option is financially available to you?  Call vLoan today at 1-844-77-vLoan to get more information or get your free rate quote today

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