A lot of homeowners make the decision to move from the homes they live in into different homes. Some people do this to upgrade, others do it to downsize, and some people do it move to a new location. There are other reasons, too, but one big decision homeowners have to make when doing this is whether to buy a new house or sell their house first. Here are three top reasons it is typically better to sell a house before buying another one.
It reduces risks of financial problems
One big problem you can face if you buy a house before selling yours is the risk of financial problems. If you expect that right after you buy another house you will sell yours, what will happen if you cannot find a seller for your house right away? Would you be able to afford to pay a house payment on both homes? What would happen if it took a year to find a buyer? Additionally, if you move to your new house while trying to sell your other one, there may be challenges you will face while trying to sell a vacant home. It is harder to sell a house that no one lives in than to sell a house that is currently being lived in. You should carefully consider all of these factors before buying a house before you sell.
It makes getting a loan easier
Secondly, if you decide to buy a house before you sell, would you be able to get a loan for the house you want to buy? In this situation, the lender would consider your purchase a second home purchase, and it can be a lot harder to get a loan for a second home rather than for a first home.
It can alleviate a lot of stress
Finally, selling your house first can relieve a lot of stress and anxiety in this situation. If you buy first and are extremely worried about your finances if you do not sell your other home, selling your house before you buy would be one of the best solutions possible, as it would eliminate a lot of stress in this event.
These are three top reasons to consider selling before buying, but you are free to handle this event any way you would like. You should, however, contact a home buying agent or selling agent for help throughout the process.Share