22 Nov 8 Reasons to Buy a Home Before Selling Your Current Home
You are financially solid
You don’t need to sell your home to buy another home. You may have the money set aside; you may qualify to own more than one home; you may be able to take out a short-term “bridge” loan.
You have found THE home
You have to have it! The home that suits your needs and heart perfectly has come on the market and you can’t bear to think that someone else will buy it before you sell your current home. Buying before selling could be the right thing to do… Especially if the seller of that perfect home is extremely motivated.
Leaps of faith are not your thing
You may feel anxious about making the leap of faith required to sell your home first without knowing exactly where you will live next. It will be easier to let go of your current home once all the details are settled with your new home purchase.
Time is on your side
Wait for the right home to buy, a home that meets all your expectations (location, layout, price, etc). Eliminate the need to settle just so that you won’t have to crash at your friend’s or family’s home… or to find a short-term (and expensive) rental and then have to move again…
Save on the costs & hassles associated with moving
When you sell your current home before you buy a new one, you will in most cast have to move twice — first to a short-term rental, then to your new home. Moving is expensive and a lot of hard work. Keeping your existing house allows you to move just 1 time and at your own pace. It also avoids paying expensive temporary storage fees, and the hassle of having some of your belongings locked up in a remote storage place.
Use a contingency clause
This solution may be the best combination of comfort and safety. If market conditions allow it, making the purchase of a new home contingent upon the sale of your current one allows you to lock up the purchase – so that you feel comfortable with where you are moving – while your real-estate agent works to sell your current home.
New homes appreciate generally faster than old homes, especially in a rising market. Builders schedule price increases based on three factors: increases in costs of materials and labor; scarcity of supply as the new community sells out; and specific market forces within a local real-estate market.
By way of comparison, used homes only appreciate according to local market conditions.
Buy your new home before price increases (buy low) and sell your old home later when it is worth more (sell high)
Rent your current home
If you can detach yourself from the emotions attached to your current home and think in terms of business, you open your doors to building real wealth.
Owning a piece of real-estate and renting to someone else presents many advantages:
- As the property appreciates and the balance of your mortgage loan goes down, you build equity.
- If your rental income exceeds your holding costs, you are cashflow-positive.
- Owning investment real-estate offers additional tax advantages over owning a home as its occupant.
Food for thought… Why not pursue this train of thoughts with us? Call us at (520) 338-8836 for a no-obligation consultation.