Seamless Transition: Buy Your New House Before Selling

The Seamless Transition: How To Buy Your Next House Before Selling The Old One

by Alan Jackson — 3 months ago in Review 2 min. read

Every homeowner’s journey is unique, but one common challenge arises when considering upsizing, downsizing, or relocating: “Should I buy my next home before selling my current one?” Indeed, this is the real estate version of the classic “chicken or the egg” dilemma. But while it might seem daunting, buying before selling can be a strategic move if you know how to navigate the process. So, how exactly can one buy before selling, and what are the pros and cons? Let’s dive in!

The average time to sell a home stands at 67 days. This duration can stretch longer in a fiercely competitive market. Therefore, before you even entertain the thought of “buy before you sell,” it’s crucial to ensure your current home is in excellent condition and tagged with a competitive price. After all, the last thing you’d want is for your house to sit on the market longer than anticipated.

But why buy a new home before selling your old one? The Spruce sheds light on this, highlighting the benefit of locking in both the interest rate and purchase price. This strategy can offer substantial savings and peace of mind in times of escalating real estate prices. However, this has its risks. The uncertainty that your current home might not sell as swiftly as hoped or at your desired price looms large. This potentially means bearing the burden of dual mortgage payments until your existing property finds its new owner.

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To embark on this path seamlessly, Investopedia provides a step-by-step guide:

  • Get Pre-approved for a Mortgage: Before any house-hunting begins, ensure you’re pre-approved. This not only solidifies your position as a serious buyer but also gives you clarity on what you can afford.
  • Start Your Home Search with a Clear Budget: While it’s exciting to explore potential new homes, always be grounded with your budget. Remember, the possibility of handling two mortgages should be a critical factor in your financial planning.
  • Make a Contingent Offer: Once you’ve zeroed in on your dream house, put forth an offer that’s contingent upon the sale of your current home. This means the sale of your existing home must successfully conclude before you seal the deal on your new one.

Transitioning from one home to another is undeniably a period filled with anticipation and anxiety. Yet, when armed with the right information and approach, making this a smooth and rewarding journey is entirely possible.

In conclusion, buying a new home before selling your current one has advantages and challenges. As long as you’re equipped with a realistic view of the market, have your existing home in prime condition, and are financially prepared for potential dual mortgages, you’re well on your way to making a seamless transition. Remember, every homeowner’s journey is about making choices that align with their unique circumstances and future aspirations. Happy house hunting!

Alan Jackson

Alan is content editor manager of The Next Tech. He loves to share his technology knowledge with write blog and article. Besides this, He is fond of reading books, writing short stories, EDM music and football lover.

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