Benefits of Buying First and Selling Second

For homeowners looking to move on to their next piece of property it is both an exciting and stressful time in their lives. On one hand, selling your property first means that you will not run the risks of being straddled with two mortgages at one time, but you do run the risk of having to live out of suitcases in a hotel, moving in with relatives, or having to get a rental. Conversely, on the other hand, there are definite benefits to buying first and selling second, particularly when they find themselves operating in a seller’s market.

One of the biggest drawbacks of trying to sell your home while buying another is that if your sale doesn’t go through, it would delay or stop the purchase of your new home. Some sellers may not be willing to accept an offer if it is contingent on the sale of another property. Buying before you sell minimizes some of the risk of not getting the home you want.

While there is a fear that the old home might take upwards of six months to move off the market, the homeowner might consider letting the old house out for rent to help defray the additional mortgage amounts, maintenance, and security costs associated with an additional property.

Finding the Funds to Support Two Properties

For those looking at the inherent benefits of buying first and selling second, they can secure the needed capital they need to finance the down payment on the new property by tapping into their existing home equity line. Or you could also arrange for a short-term bridge loan to cover the gap between buying that first property and selling their second.  You don’t need to put your new home hopes on hold when you decide to buy that new home before selling the old one.

If you’re interested in moving on from your existing home, contact Minteer Real Estate Team today to discuss your options.