20 Jul When is keeping your house the best option
You are financially equipped
You don’t have to sell you house to buy another. You may have the money set aside, qualify to own more than one home or be able to take out a short term bridge loan.
You have found the perfect home
You have to have it! The perfect home has come available and you cannot bear to think that someone else will buy it before you sell your current house. It could be the right thing to do, especially if the seller is extremely motivated.
You feel safest knowing where you are going
You may be the kind of person who feels anxious about making the leap of faith required to sell you home first without knowing exactly where you will live next. It will be easier to let go of the house you are living in once all the details are settled with your new home purchase.
You have time on your side
Wait for the perfect home to buy that meets all your expectations for location, layout and price. Eliminate the need to settle just so that you won’t wont have to crash at your friend’s or family’s home or find an expensive short term rental and move twice.
You save on moving costs and hassles
When you sell your old house before you buy a new home, most often you’ll move twice — first to a short term place and then to your brand new home. Moving is expensive and a lot of hard work. Keeping your existing house allows you to move just one time and at your pace.
This way you can avoid the expensive temporary storage fees and hassles of having some of your possessions locked up in a strange and inconvenient place.
You can have a contingency
This plan can offer the best combination of comfort and safety. If your market conditions will allow it, a purchase of your new home contingent upon the sale of your current house allows you to lock up your purchase so that you feel comfortable with where you are moving while you work with your real estate agent to sell the home you are living in.
The market is rising
New homes tend to appreciate faster than old homes. This is especially true in a rising market. Builders usually have regular price increases that are driven by three factors: material and labor cost increases, diminishing supply as the community sells out, and the market forces within the local real estate market. Used homes appreciate according the the local real estate market only. Buy your new home before price increases and sell your old home later when it is worth more. Buy low. Sell high.
Turn your old house into a rental
If you can change your mindset toward your existing house from one of an emotional attachment to a business mindset, you have the opportunity to build real wealth.
Owning real-estate that someone else is paying for offers many advantages: Build equity as the property appreciates and the loan balance goes down. Receive cash flow if your rent exceeds your holding costs. Benefit from the added tax advantages that owning real-estate as an investor offers over owning as an occupant.
Would you like more advice before you take a leap of faith? Click to meet the Realtors® of Excelsior Associates for a no-obligation consultation or call us at 520-612-7422