does it make sense to buy a new home before you sell?
TRANSCRIPT
Does It Make Sense to
Buy a New Home Before You Sell?
If you are ready to purchase a
new home, but have not sold
your old house yet, you will need
to make a difficult decision.
Should you purchase the new
home now, or just wait until the
old one sells.
The answer to this question
is not so simple.
However, by asking yourself some
additional questions, you will be
able to make the right choice
about purchasing your new home.
Is The New Home A Necessity?
Are you required to move for
work or family reasons, and is this
move needed immediately?
If so, you may wish to purchase
your new home now and keep
your old property up for sale.
If you are moving out of state,
contact a management company
to keep the maintenance up on
your old home until it sells.
If you are going to own two
homes at one time, it is also
important to consider some of the
double costs you will be incurring
during this period.
You will have to pay
maintenance and some of the
utilities on both properties until
the older home sales.
These additional costs should be
part of your consideration.
Is It A Really Good Deal?
Sometimes the price on the perfect
home cannot be overlooked.
Combined with low interest rates, it
may be in your best interest to
secure the new home right now and
keep your old home on the market.
Real estate prices have begun
to climb again as the
economy grows stronger.
Locking into a good deal now
may prevent you from paying
a lot more in the near future
for the same type of property.
In addition, you can use your
older home as a bargaining tool
on the new home purchase.
If the seller really wants to sell their
home, they may be willing to
negotiate the price or throw in some
extras like a home warranty to
convince you to purchase the
property before selling your old
home. Use this to your advantage.
Can You Afford Two Mortgages?
You must consider if you can
afford two mortgage payments
during the time you are waiting
for your home to sell.
If you can, make the purchase. If you
cannot, you may want to speak to
your realtor about different options
for selling the old house.
Your realtor may recommend several
options including reducing the
selling price, creating a massive
marketing campaign, or even
packaging the home up as rent-to-
own if this is allowable in your area.
All of these options should be
discussed with your realtor.
Consider Being A Landlord
If you are interested, you could
take advantage of owning two
homes and become a landlord.
Some realtors also work as
management companies
for rental properties.
By placing your home with a
management company, you can keep
the equity you have in that home,
increase your net worth by owning two
properties, and have the mortgage
payment covered by the renters.
If you are looking for a condo
to buy in Arizona, We Know
Urban Realty will help you find
the perfect place.
Their realtors are experts
when it comes to urban living.
