Many property buyers who decide to move to a different home ask the question whether they should sell their current home before or after they buy a new one. The truth is, there no concrete and direct answer to this question. There are pros and cons in selling your current home before buying a new one, and the same can be said about selling the existing property after purchasing another.
This will also depend on your personal situation and how much cash you have available at the bank as well as your credit rating and your ability to borrow some money even for the short-term.
Selling Your Current Home Before Purchasing
Some folks decide to sell their current home, live in an apartment, and hunt for a new place to call their own. There is no perfect formula in selling a house, but the process can be unpredictable, especially when the market is not in your favor. However, doing this puts you in a more ideal position to negotiate for a new mortgage, due to the fact that you are buying a property with no sale contingency of your current house.
However, one con in selling your house before buying a new one puts you in a vulnerable spot where you might not be able to have a place to live right away. Sure, you can rent an apartment. But it might take a while for you to find your next perfect home. By then, the money you earned from your home sale might have slowly depleted. Which mean you might have to select a house that requires a cheaper down payment.
Selling Your Current Home After Purchasing
The most significant pro here is that when you buy a house before you sell your current want, you allow yourself to choose a suitable line of properties. It will reduce the pressure of finding a new home and the stress of fixing it up the way you want it. As a buyer of a new property, it also allows you more time to make educated decisions with your property investment.
But one disappointment that can happen here is if you are unable to sell your property on time, your purchase offer for the next property is going to be contingent until the sale and the transfer of your current home. If time is against you, then you can become a non-contingent buyer and lose the chance to own the next property you want to purchase.
Buying a home may seem simple. But when you do not have the right means to do it, then things can get complicated. This is why every property owner out there will recommend any buyer to hire a real estate agent. They represent your best interests especially when you are buying a new house.
Uisng a good real estate agent
It would be harder to maximize your potential cash flow without using a top-notch real estate agent. People at great companies like the brokers at Kale Reality in Chicago for example will be able to get you a better deal than if you where just trying to do everything on your own.
Expert knowledge is required and as these transactions encompass large dollar values, even a few per cent changes in a deal will equate to thousands of dollars in or out of your pocket. So do not try to save by doing everything yourself as it may cost you more in the end. Hire a reputable real estate broker so that you get all the good advice needed to make informed decisions.