WHAT IF I NEED TO SELL MY HOME BEFORE I BUY A NEW ONE?
There is no right or wrong decision pertaining selling your old home before or after buying a new one. Whether any of the decisions would be an advantage for you will depend on your unique situation and the real estate market condition in your city. However, hiring a qualified real estate agent puts you in the best negotiating position possible to put your home on the market prior to finding the new home that you want. You will need to have a detailed conversation with your realtor so that you can truly understand the options available for you and their related costs.
Although selling first seems to be the best bet, it depends on the market forces. As a general rule, it is best to sell your home first in a buyer’s market. However, in a seller’s market, it is more favorable to consider buying first. So, it is important that you find out whether the market conditions favor sellers or buyers. The outcome of your findings will help you to make an informed decision on whether to sell or buy first. As an established real estate agent in Coachella Valley, I always advise homeowners to consider answering the following two personal questions if they really need to sell their homes first before buying new ones.
- Can you handle two mortgage payments at a time?
If you make a decision to buy first and you’re unable to sell your home on time, you may end up having to make two sets of mortgage payments, two sets of utility bills, and two sets of property taxes. All these additional expenses might put undue pressure on you to want to do away with the home as soon as possible by accepting a low-ball offer. Once you find the perfect new home and have placed an offer, that offer will be “contingent” on the sale of your current home. Buyers who are in this position may not have as much negotiating power as another buyer whose home has sold, or at least has accepted an offer. Sellers may hesitate to accept an offer on a contingent buyer because there are too many things that need to happen prior to finalizing the sale. However, all these circumstances are dependent upon the situation and the buyer involved.
- Can you live with uncertainty?
If you’re able to sell your home before buying a new one, you will be in a position of control. Of course, you will know how much money you have to work with. So, if you hate the uncertainty that goes with buying first, it may be better for you to sell first. You will be in control of your moving date and the amount you would need for the next home purchase. The worst case scenario you may encounter is to have to put up somewhere temporarily or have to keep some of your belongings in storage pending when you will buy your new home.
It is easier for you to get a new mortgage when you’ve sold your old home. More also, you won’t have much pressure on you in terms of additional expenses. The bottom line is whatever decision you’re making, always consider the service of a qualified realtor. This will prevent you from legal and technical problems associated with home buying and selling.
If you live in any of the cities in Coachella Valley and you’re interested in buying a home in the neighborhood, you can contact me for a most reliable professional real estate advice you can find on the market.
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