Should you sell your current home before buying a new one?

 

Timing is critical in all things, but it can be especially challenging when it comes to real estate. Deciding whether to sell your home before buying a new one is a difficult decision.

It could land you in temporary housing if you haven’t found a house to buy. That means two moves, which is nobody’s idea of a good time. Or, you could wind up paying two mortgages for a while if you go ahead and buy that dream house before you’ve sold yours. Each option may have advantages that depend on market conditions.

If the built-up equity in your current home will be applied to the down payment on the new home, naturally the former will need to be sold first.

Some home buyers decide to turn their current home into an investment property, renting it out. In that case, the current home will not need to be sold. However, your loan advisor will still need to evaluate your risk profile and credit history to determine whether making a loan on a new home is feasible while retaining title to the old home.

If your home sells before you find one to buy, you can opt for a “rent back,” also known as a sale-leaseback, holdover, or “possession after closing,” in which you rent your home from the new buyer for a specified period, usually no more than 60 days.

So, if you have decided to sell your home before buying, consider these tips to get top dollar.

Our team here at Irish Realty can help walk you through each option to help you decide which is best for you. Give us a call at 574.360.2569 or email steve.smith@stevesmithteam.com and we will get right back to you.

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