Buying and selling houses can be such an exciting time! However, it can also be very stressful, especially if you are trying to decide whether or not you should be buying a house before selling your current one.
Is it a good idea? What are the pros and cons either way?
If you are asking yourself these questions, then keep reading.
We will cover the benefits and disadvantages of selling and buying a house at the same time. We will also consider a few things that you may not have thought about.
Buying a House Before Selling? Consider This:
It may not be the most common way to do things, but there are several benefits to buying before selling when it comes to property. The most important thing about putting an offer on a house before selling yours is that it gives you time.
Time to find the right house for you. Time to renovate, remodel or offer a little bit of TLC if needed.
In simple terms, time to move and settle in without added stresses. Other benefits include:
- Avoiding multiple moves
- No rush to sell so you get the price you want
- You can use your equity to finance your new home
As with all things, there are a few disadvantages as well. Taking out two loans, getting two mortgages, and paying a cash deposit to secure your new home may be things that you’d rather not do.
There may also be tax implications of buying a house before selling, so you need to investigate this in-depth. Many of these considerations will depend on the current value of your property, how long you have lived there and how you bought it, to begin with.
A Sellers’ Market?
If you find yourself in a seller’s market, then you are in luck. In this scenario, there are fewer available houses than buyers, and houses sell quickly and at the asking price.
This may lead you in the direction of buying before selling as you will feel confident that you can sell just as fast. This tends to make the buy before you sell option more appealing, especially if you are using a service such as memphis.webuyhouses.com which will help make buying and selling so much easier.
Avoid Contingent Offers
way to buy a house before you sell yours is to treat both transactions separately. This way you’re not relying on contingency offers when you come to buy your new house.
A contingency offer means that you are only able to purchase your chosen house once the sale of your current house goes through. It can often make offers less attractive to the sellers – they are more likely to stick with a buyer who can complete the sale with fewer complications.
Buying and Selling
It doesn’t matter if it is your first time buying and selling, or whether you do it often (for the thrill, of course!) but buying a house before selling can work in your favor. It frees up time and cash flow to make sure that the next house you invest in is the perfect house for you!
If you enjoyed learning about how to buy a property before selling your own, have a look around our blog for other articles you may find interesting.