Many homeowners are put in the position where they must decide whether they should purchase a new home before their current one sells or wait to sell their property first. While your own personal situation and finances can affect this decision, here are a few things you should keep in mind.
Look at the Current Real Estate Market
The market is a big indicator of whether you should sell your home before you purchase a new one. If you are experiencing a seller’s market, you are in a much better position to sell your home before you make a purchase. This is because the inventory for new homes is quite low, making it much easier to sell your home quickly and at a price you desire. However, if the market is in favor of buyers, your home may sit on the market for quite some time, making it difficult to finance two homes at once.
Your Financial Situation Must be Ideal
In many situations, homeowners cannot afford two mortgages. This means that unless they sell their current home, they will not even qualify to purchase a new one. Having a much tighter budget can also make it challenging to purchase the home that you want or make it hard to qualify for as large of a mortgage that you desire. Additionally, it means you have less wiggle room when it comes to placing offers, providing earnest money, etc.
You Can Make a Contingent Offer
If you find a home that you love and can afford once you sell your current property, you can place an offer with contingencies attached. You may state that you will buy the home but only after you sell your current one. While this is quite common practice, it can hurt your chances of the seller accepting your offer, particularly if other offers are placed. You should work closely with your real estate agent to determine if this is a smart path for you and your current situation.
In many cases, you should sell your current home first and then focus on purchasing your dream home. While you certainly have many options, such as a placing a contingency offer, there is also much at risk. If you have any questions about buying or selling your home, contact Jacksonville real estate agent Krista Fracke today. She can help you sort through any tough decisions and move forward with your best interest in mind.